Also in this playlist...
This transcript is automatically generated
On earnings -- GAAP reporting fourth quarter results after the bell today the gap is of course largest mall based clothing chain here in the US but despite its major footprint.
-- have been struggling to lure customers into stores joining staffer preview ahead of earnings John Morris.
Senior retail analyst at BMO capital markets John welcome to you thank you could be here are right the quick headline buy sell or hold ahead of the report today.
Well I would certainly hope that I would start to get a little bit interest -- it's are -- little interest thing.
-- thinking about testing whether or not they're getting back contracts so for now I'm in a market perform which is a hold if you own it -- keep.
See -- cautious which is really not a surprise considering -- -- how what five consecutive years of declining same store sales.
-- very tough sledding for them they've had to go and fix each division one at a time.
And it's hard it's like a juggling act it's hard to keep all the balls up in the air once we're gonna see whether or not this is going to be the year that they can really perform.
You know for retail for women's retailers in particular you know GAAP covers the -- with all of their holdings but I mean it seems.
That's the formula is fashion and interest staying close that people simply want -- where I mean -- the gap doing to lure back that interest well.
Suggesting that you say that because there's that the -- key linchpin.
For the -- to get right this year is going to be big gap division domestically and it's -- particularly -- and women's.
Clothing in the women's category they've got to get that spark a fashion back that's what they're looking to do.
They've got some designers interesting designers on board Diane von Furstenberg is doing a toddler -- I would imagine that the the children's line for the gap is got to be doing probably a little bit better a little stronger because -- contract out there.
Yeah out you know gap kids is -- section.
And they have been performing really well it's because.
In part because Pam Wallach has had been ahead of that division now here's what's -- think Campbell left the last year at the gap kids division.
To go over to the gap adult she's very talented she's the one -- going in recruiting no more talent.
Within that divisions helped turnaround the women's says she's trying to take a little bit of -- magic from kids and apply to.
The gap adult side particularly women's and that's what could get really had some of from J.
Crew which has been doing tremendously they'll come over about a year and a half or so ago how is that working -- I well actually.
I think you're referring to Tracy Gardner who they just.
Announced couple months ago I was you're going to be coming into the capital division -- initially as a consultant.
To the design.
-- -- we've known Tracy for years when she was a J.
Crew very very talented what could be interest thing there is if she comes in not only sparks the fashion account.
But also looks on the career side that is the kind of the going out that's been underperforming back to be the real.
Opportunity for them if she can get that business off the ground which would be.
More as we get towards fall than the strength of sizzle.
I also understand we've got to listen for gaps plans with its real estate that they're gonna shrink square footage but then also expand overseas.
Yeah that's right you know they have had a pretty aggressive.
Right sizing program under CEO Glenn Murphy one of the first things he did when he came to the GAAP.
Several years back was to Begin to work that realistic in the right positions you have.
-- too many gap stores you had too many old navy stores that were too big yet to shrink those very complex process.
Over the last couple years she's been doing that at both old navy in the cap.
We calculate something like something like about 30% of the gap stores over the last five years have gone away.
So that's right -- in the US and now they're getting ready to do a little bit more expansion international quick last question -- line and -- planet.
-- -- the business or just kind of fringe businesses at this well it shows they're not super -- that this is -- they're very small but it shows you the creativity of the cap has.
Their ability to go into new areas and really spark and off the ground Athlon you know could give lululemon Iran for its money as a -- keep an eye an after show John -- many many.
Filter by section