Gap, Inc.
Portfolio Analysis
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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 ...