Gap (GPS) Still Has Time To Close "Old Navy" And Save Itself

Retail

Published: February 5, 2009 9:58 am

Last Updated: April 27, 2020 9:53 pm

R218533_855025 Sales at Gap (GPS) on a same-store basis were off 23% in January, which is breathtaking and sad. Revenue for the chain moved down from $935 million in the month last year to $757 million.

No part of Gap’s business is doing well, but the one division that is close to drowning the entire company is Old Navy. It needs to be closed or have a huge number of its stores shuttered.

Last month, Old Navy same-store sales fell 34%. While Gap said the company’s overall earnings would be at or above forecasts for the quarter because of cost cuts, that cannot continue indefinitely. There are only so many people to fire.

In a deep retail recession, a brand which is losing a third of its sales year-over-year is not going to make a comeback. Keeping Old Navy is going to kill more shareholder value, and do it soon.

Douglas A. McIntyre

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!