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Gap Inc GPS Stock Quote

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NYSE:GPS

Morningstar‘s Stock Analysis GPS

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Is it the right time to buy or sell?

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No-Moat Gap Outperforms Low Expectations, but Holiday Outlook Remains Hazy; Shares Undervalued

David Swartz Equity Analyst

Analyst Note

| David Swartz |

No-moat Gap reported a dose of positive news in an otherwise trying year as its third-quarter results were better than expected. Much work needs to be done, though, as the company remains without a permanent CEO and high discounting is expected in the holiday period due to elevated inventories and slowing consumer spending. Indeed, the firm projected its sales to drop by a mid-single-digit percentage in the fourth quarter, shy of our negative 1% estimate. Still, we believe Gap’s shares are undervalued in relation to our $25 fair value estimate, which we do not expect to change materially.

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Key Statistics GPS

Company Profile GPS

Business Description

Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap’s sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates nearly 3,000 stores in North America, Europe, and Asia and franchises about 600 stores in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.

Contact
Two Folsom Street
San Francisco, CA, 94105
T +1 415 427-0100
Industry Apparel Retail
Most Recent Earnings Oct 31, 2022
Fiscal Year End Jan 28, 2023
Employees 97,000

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