) is one of the largest apparel retailers in the US with about 8%
market share of a highly fragmented US retail apparel industry.
Gap competes with other specialty retailers like Aeropostale
Abercrombie & Fitch
), J.Crew Group (
Most of Gap's business is based in the US, which accounted
for about 80% of its total revenues in 2009. However,
the company has plans to grow its business outside the US, mostly
through its franchise business.
What percent of Gap's Stock Value Comes from Gap Stores
A. 13% B. 27% C. 35% D. 48% E.
Make a selection above to see the answer…
Gap Stores Operations
Gap recently reported a 5% year-over-year increase in
comparable sales for its North American Gap stores during
November 2010, pointing towards a potential recovery in consumer
retail spending. Continued growth could boost revenue per square
foot at Gap stores, for which we currently estimate a 4% CAGR
between 2010 and 2013. Drag the trend line in the chart below to
examine the impact of your own projections.
The company has been gradually reducing the number of Gap
stores amid falling demand for Gap branded products since 2001.
Only 20% of Gap stores are located outside North America,
although the company plans to increase its international presence
in the years ahead. We expect the number of Gap stores to
increase modestly going forward. The chart below examines the
sensitivity of Gap's stock value to the number of Gap stores in
We currently have a $33.87 price estimate for
Gap. To see our full estimate click here.