Preview

Gap, Inc. Portfolio Analysis

Good Essays
Open Document
Open Document
5707 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Gap, Inc. Portfolio Analysis
Gap, Inc.
Portfolio Analysis
[pic]
Company Overview: Gap, Inc. is a leading American specialty apparel retailer based in San Francisco, California. It sells casual apparels, accessories, and other personal care products for men, women, and children. The products of Gap, Inc. include denim, khakis, T-shirts, boxers, casual wear, and others. It is traded in New York Stock Exchange under the symbol GPS. Currently, the company boasts approximately 150,000 employees and 3,139 stores all around the world. Gap, Inc. sustains a large number of brands, namely Gap, Old Navy, Banana Republic, Forth & Towne, Piperlime, and others. These different companies are bought by the parent company in different times. Started as a general jeans retiling store, Gap, Inc. today has a market value of $13.32 billions. Throughout its history, Gap, Inc. has established itself as a leader in the industry.

History: In July 1969, Donald Fisher and his wife Doris went to buy a pair of Levi’s jeans in a department store. But they could not find a pair that would fit him, which led them to feel that the demand of jeans has out-weighted supply. With this knowledge, the couple started a store in a small shop near San Francisco State University. This store only carried records and Levi’s jeans. The immediate response from young customers led Fisher to open other outlets. As the 1970s arrived, the appeal for jeans grew thus leading to high growth of the company. $2.5 millions in sales in 1971 increased to $97 million in 1976 with 186 stores in 21 states. As the recession of 1970s arrived, Gap had to react by changing the lines of clothes to a larger variety. They started selling their own labels which was later aided by appointment of Mickey Drexler as a CEO in 1980s. In May, 1988 the corporation was reincorporated in State of Delaware. The company had huge success in late 1990s with net income surpassing $824.5 millions. Before this, Gap, Inc. purchased Banana Republic in 1983.



References:

You May Also Find These Documents Helpful

  • Powerful Essays

    Mkt 421 Week 4 P's

    • 3524 Words
    • 15 Pages

    The Gap is a clothing company that specializes in contemporary, urban clothing with a mid-range pricing scheme. They have stores located all over the globe in countries such as the United States, Canada, France, Germany, Japan and the United Kingdom. Gap was founded in 1969 by a real estate developer who was in search of a well-organized and well-stocked jeans store. The store was named after "the generation gap" and originally sold Levis jeans. In 1974, they developed their own private clothing label and by 1991 began selling only their private label brand. Gap introduced its website in 1997. The following year, in 1998, Gap's stock increased 138.4%. In 2000, though, their stock fell 44 %. (http://www.thestreet.com/_yahoo/funds/gutcheck/1335261.html)…

    • 3524 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    The Gap Inc. is a global specialty retailer that operates stores selling casual apparel and accessories for men, women, and children (Yahoo Market Guide, 2001). Under the Gap, are the Old Navy and Banana Republic brands (Yahoo Market Guide, 2001).…

    • 670 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Financial Analysis

    • 787 Words
    • 4 Pages

    Horizontal Analysis - The financial statements of Competition Bikes indicates a reverse in sales between fiscal years 6 and 7 where revenues increased to 37.5% and then a decreased 16.3% between fiscal years 7 and 8. This apparent trend is an indication that the company is moving in the wrong direction as sales have decreased. Not only is sales decreasing because of the current economic situation, but customers who also sponsor professional riders are decreasing. Reduction of sponsors will decrease advertising resulting in reduced sales. The trend in sales will have ramifications through out the entire organization as is demonstrated in further review.…

    • 787 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Old Navy Marketing Plan

    • 883 Words
    • 4 Pages

    Old Navy is a brand owned by Gap, Inc. As a whole, Gap’s purpose is “to make it easy for you to express your personal style throughout your life” (www.gapinc.com). The culture of Gap, Inc is governed by their key values: integrity, respect, open-mindedness, quality and balance. One way Gap achieves their purpose is through one of their four brands, Old Navy. The brand is known for offering on-trend apparel and accessories at great value. Old Navy's mission is to offer affordable, fashionable clothing and accessories for the whole family (www.oldnavy.com). Their mission is defined in terms of customer benefits rather than in terms of goods or services. For the remainder of this analysis, the Company will refer to Old Navy and not Gap, Incorporated.…

    • 883 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The Gap 10K

    • 1402 Words
    • 6 Pages

    Under item 1 it gives the general background information of the company. The Gap was incorporated in the State of California in 1969, and then reincorporated under the laws of the state of Delaware in 1988. The Gap offers products in apparel, accessories, and personal care, with products for men, women, children, and babies. They sell these products under different company names: The Gap, Old Navy, Banana Republic, Piperlime, and Athleta, where products are sold in retail locations or online. Gap, Inc has company-operated stores in the United States, Canada, United Kingdom, France, Ireland, Japan, China, and Italy. Other information included with general business information was: merchandise vendors, franchising, inventory, competitors, employees, and executive officer profiles.…

    • 1402 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    According to Gap Inc., they operate 3,143 stores, which includes the Old Navy brand. Old Navy first opened its doors in 1994, in Colma, California. Less than four years after opening, in 1997, Old Navy 's annual sales reached a record $1 billion. In 2000, Oldnavy.com was launched. Old Navy made its debut outside the United States, in 2001, opening 12 stores in Canada (www.retailingtoday.com). For fiscal, 2007, Gap expects to open 230 store locations weighted toward Old Navy.…

    • 1941 Words
    • 8 Pages
    Good Essays
  • Good Essays

    I choose to do my financial analysis on Dollar General. Dollar General is one of the largest discount retailer in the United States, they have over 12000 stores in over 40 states. Dollar General allow consumers to save time and money by offering quality items at an everyday low price. (Dollar General, 2016) Dollar General is one of many retailers who offer quality products made by American manufacturers. In 2009, Dollar General once again became a public traded company, before that they were public-turned-private; they made this change through a successful Initial Public Offering (IPO). Initial Public Offering is the first sale of stock by a private company to the public.…

    • 518 Words
    • 3 Pages
    Good Essays
  • Better Essays

    From ready-to-eat cereal to convenient meals to wholesome snacks, General Mills is one of the biggest food products manufacturers and competes in growing food categories that are on-trend with consumer tastes around the world. The company markets many well-known brands, such as Haagen Daazs, Yoplait, Betty Crocker, Totinos, and Cheerios, among others. Main rivals include Kellogg, Kraft, Conagra Foods, and Sara Lee. General Mills sells its products in three segments: U.S. retail (63% of net sales), International (25% of net sales), and Bakeries and Foodservices (12% of net sales). In addition, General Mills sells cereals and ice cream through its Cereal Partners Worldwide and Haagen Daazs Japan joint ventures. General Mills continues building its presence in developed markets and increasing presence in emerging markets worldwide by investing in established brands while also developing new products. The company’s goal is to generate balanced, long term growth.…

    • 1080 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Formal CEO of Gap, Millard Drexler, has found the way to meld the merchandise from stores and catalogues into one consistent product. In previous years, one of the main issues J Crew had was that their catalogue merchandise was not consistent with those they had in retail stores. Furthermore, another business strategy they have utilized is the importance they give to their quality, value, and design, but also taking into consideration that they need to be loyal to their opening price points. Differentiating themselves from stores such as Zara, where they offer not only in trend fashion merchandise, but also offer a long lasting quality. In other words, it is not fashion for the moment, but fashion for a…

    • 431 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Old Navy

    • 1319 Words
    • 6 Pages

    Old Navy is a family oriented clothing retailer, both in-store and online, owned by an American Multinational Corporation, Gap. Old Navy’s mission is to offer affordable, fashionable clothing and accessories for adults, kids, baby’s, and moms-to-be. It all began in February 1993, when a small team of Gap employees was given an assignment to come up with a business plan, for a revolutionary new approach to retail. The following fall, was the birth of Gap Warehouse, who offered casual, yet fashionable, clothing at a great price. The name “Gap Warehouse” seemed too dull, so the name was shortly after changed to “Old Navy”. The first Old Navy opened in March 1994 in Colma, California. They now have over 1000 stores within America and Canada, and also account for approximately 40% of The Gap’s $15.8 billion in sales. An early ad showed the spirit of the brand: “Imagine a store that offers clothing for the whole family. And everything it sells has a great style, in great colours, with the kind of quality you recognize at once. And then imagine that the jackets, the sweaters, the dresses, the t-shirts, everything you want and need to buy is at a price you can’t believe. This is Old Navy.” Less than four years after opening, Old Navy made history as is became the fastest retailer to reach $1 Billion in annual sales.…

    • 1319 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Financial Analysis

    • 787 Words
    • 3 Pages

    The turnover rate tells investors what percentage of the portfolio value was bought and sold throughout the year. The higher the turnover rate, the higher…

    • 787 Words
    • 3 Pages
    Good Essays
  • Good Essays

    While Gap Inc. has had decreases in net sales over the past years they are in a financially strong position currently. Also in 2009 the decrease in net sales slowed to only a 2 percent fall from the previous year of 12 percent. The Net income for fiscal 2009 increased 14.0 percent to $1.1 billion, compared with $967 million, for fiscal 2008. Also Net income increased for 2008 by 16.0 percent from 2007 where net income was only $833 million. The gross margins have also increased for fiscal 2009 where it was 40.32 percent as compared to 2008 of 37.5 percent and 2007 of 36.11 percent. The operating margins also continue to grow for fiscal 2009 Gap had an operating margin on 12.8 percent as compared to 10.7 percent from 2008 and 8.3 percent in 2007. Gap has also been able to grow its cash not only each year but also as a percentage of total assets. For fiscal 2009 Gap has 2.3 billion in cash which was 29.4 percent of its total assets as compared to 2008 where cash was only at 1.7 billion and 22.6 percent of total assets. Gap also has worked to reduce their debt down to zero by 2010 and they have done so, currently they have no long-term debt and 2.3 billion in cash. The 2009 current ratio for Gap is 2.19 as compared to 1.88 in 2008, and 1.67 in 2007. Gap is increasing their liquidity from year to year while net sales are still decreasing. Gaps merchandise inventory has also seen a decrease not only in value but also as a percentage of total assets 2007 Gap had merchandise inventory valued at1.57 billion and that represented 20.1 percent. Inventory was 1.50 billion and represented 19.9 percent of total assets in 2008. In 2009 the merchandise inventory was 1.47 billion and represented 18.5 percent of total assets.…

    • 572 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The inancial analysis of the company for 1995, comparing data from 1993 and 1994 Very well researched…

    • 1339 Words
    • 13 Pages
    Good Essays
  • Good Essays

    Google Financial Analysis

    • 692 Words
    • 3 Pages

    5. Have Google’s business model and strategy proven to be successful? Should investors be impressed with the company’s financial performance? How does the company’s financial performance compare to that of Microsoft and Yahoo? Please conduct a financial analysis to support your position—you may wish to use the financial ratios presented in the Table 4.1 of the text as a guide in doing your financial analysis of the company.…

    • 692 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Financial Analysis

    • 1557 Words
    • 7 Pages

    PROBLEM 8-1 Net Profit Margin | = | Net Income Before Minority Share of Earnings and Nonrecurring Items | | | Net Sales | 2011 | | 2010 | $52,500 | | $40,000 | $1,050,000 | | $1,000,000 | | | | = 5.00% | | = 4.00% | Return on Assets | = | Net Income Before Minority Share of Earnings and Nonrecurring Items | | | Average Total Assets | 2011 | | 2010 | $52,500 | | $40,000 | $230,000 | | $200,000 | | | | = 22.83% | | = 20.00% | Total Asset Turnover | = | Net Sales | | | Average Total Assets | 2011 | | 2010 | $1,050,000 | | $1,000,000 | $230,000 | | $200,000 | | | | =4.57 times…

    • 1557 Words
    • 7 Pages
    Powerful Essays

Related Topics