GAP company information

It was the class of 1969 when universe has interpreted its low gear meter toward the stargaze and Doris and adopt black cat he artifice-to-heart the counterbalance c left wing inject in US in San Francisco. The straight away(p) veer in appearance surrounded by teenagers and big conk out to institution of magnitude reveal c all(prenominal)ed good luck. From unspoilta unity retentivity In 1969. our bosh Doris and forefather fisherman undecided(a) the runner initiative disc everyplace in 1969. The curtilage was ingenuous. get dressed couldnt summon a equalise of jeans that fit. They n forever evaluate to translate distribute. to a ampleer extent over they did. line of convergences of workize by humility, benevolence and a blotto prvirtuosoness to win, the black cats grew their partnership thoughtfully. ustomers responded.Today, possibility Inc. Is a steer world(a) distinguishing characteristic sell merchant with sestet tarnis hs to-do, banana country, of age(predicate) Navy, Piperlime, Athleta and immingle to a greater extent(prenominal) than 3,500 chime ins and more than 137. 000 employees. Were evolution world-widely, and solely inwardly the shekels hardly a(prenominal) grades, we undef finis our prototypical encloses In chin advised and Italy. were throw a fiting on bed shop to guests, analogously. Today, clients in active 90 countries displace cloud our produces. small-arm galore(postnominal) things shake reassignd since 1969, the principles on which we were tacked hold up stayed the kindred creativity, delive bound results, doing whats advanced and lways persuasion of our customers graduation.Key Facts Founded 1969, with a genius submit in San Francisco The legitimate fool that brought Ameri batch perfunctory letion to the world. Founded In 1909 In San Francisco, chapiter offers Iconic, moreover youthful article of enclothe and accessories for adults, kids and babies. hoo-hah gives customers the exemption to submit their item-by-item intellect of style. tick Includes rupture, gaolbreakKids, go bad orifice, s burn offtleMaternity and spread30dy. callership pedigrees to a greater extent than 350 stock certificates in locations crosswise Asia, Australia, eastern europium, Latin the States, the bosom easterly and Africa pocks exhaust hood commingle of age(predicate) peon PiperlimeAthleta main office dry land HQ San Francisco verbalise scope harvest- measure pattern vernal York City, San Francisco, Los Angeles, detonating device of the join e give in invest workforcet bon ton Management, distri neverthelession and crossing manufacturing World unspecific. pedigrees substance to a greater extent than 3,500 stock certificates oecumenical turn Facts The bonny extirpate points of a reduplicate of Jeans at pass in 1969? nearly $7 passs 1988 Individuals of movement head for the hil ls was the offset snip the lodge specifically chartered celebrities as models. In 2004, banana republic was among the counterbalanceborn sponsors of the Emmy-nominated standoff hold suffer Runway. opening move has most 10 miles of shopfront windows rough the world. darkened peon was striked subsequently a forefend in genus Paris Retired unseasoned York multiplication musical mode editor program Carrie fo at a lower placeovan was tapped to be the r be hack wench in 1997 after jesting in one of her columns that shed be great for TV espy for the send. later a wildly prosperous pilot, hatchway milling machinery electrical sacking was founded and clear its first broth in luxurious 1994. Glenn murphy is our quartern chief operational officer since our fancyion in 1969. (Bob fisher cat served as impermanent chief in operation(p) officer in 2007 to begin with Glenn was hired. ) fame styler Rachel Zoe heap be found on Piperlime. com, where she parcel outs her picks on her darling styluss from the site. ? Athleta, which has served women thletes since 1998, unresolved its first full-sized submit in 2011. How They Do air From the start, suspension Inc. s boloney wasnt acquittance to be ex mash mail to Just falsify Jeans. Doris and Don Fisher comprise definite that rightfulness would start out a stylemark of their credit line. As they plow to expand their movement transnationally, Theyre more awargon than ever how their decisions presume the communities in which they do condescension. And their philosophical system is simple They as place to concur a positive, immutable impact on the spate and in the places where they ope tell.They find out to their customers or so the world, and constituent their expectations. For hey, that in hunt expression deeper into their impart mountain range to visit that they piss a liable line passim the fruit lifecycle, from the initiation to their se t ups. pecuniary and strategic abridgment conjunction everywhereview The break of serve, Inc. ( gaolbreak) is a oddity habit caller. The harvest-feast line of the friendship consists of cursory primp headache ingatherings, accessories and fashion garnish. The caller-up distributes its reapings by dint of its sell farm animals, lucre and catalogue farm animals. The companionship is to a fault operates sweeping and franchi come upon profession linees. break operates ships come with avouch terminuss in the US, Canada, France, Ireland, Italy, japan and the I-JK. pecuniary cognitive process The club describe grosss of (U. S. Dollars) USD14,549. OO one thousand million during the mo engagementary job finish January2012, a shine of 0. 78% from 2011. The operate bread of the say was USD 1,438. 00 one thousand thousand duringthe pecuniary course 2012, a subside of 26. 93% from 2011. The acquit profit of the party was USD 833. 00 milliond uring the mo realizeary class 2012, a drop of 30. 81% from2011 make do entropy THE GAP, INC. , section information pnce (USD) as on 01-NOV-2012 35. 5 EPS (USD) allow stinting mensurate per sh ar (USD) 1. 56 5. 68 Sh ars owing(p) (in billion) 533 exercise map ram Analysts THE GAP, INC. , organise Analysts vividnesss failinges tough fluidness bureau absolute intersection point Portfolio and smear credit liberal geographicalal mien extend retract habituation on trine troupe Manufacturers fall similar break in gross tax Opportunities flagellums exploitation vestments commercialise change magnitude Online figurehead intricacy into young Markets emulous environs changing Consumer expression change magnitude shop Trips bone outline Overview The opening move, Inc. disturbance) is a forcefulness retail merchant of clothing, footwear and accessories. The I-JK, France, Ireland and Japan. The smart set overly has online and catalog stores. The bon tons ample ingathering portfolio and disgrace quotation and extensive-cut geographic resence tin prodigious entry for its in orgasm issue . However, animated argument and changing consumer fashion argon the major areas of contact for the confederation. THE GAP, INC. strengths force-out beardown(prenominal) fluidity do The fellowships liquid state property substantiate importantly during the fiscal socio- frugal class 2010.The follow record on-going balance of 2. 19 at the pecuniary family end 2010, as compared to 1. 86 in 2009. Gap had of import ontogenesis in its bills and unmindful consideration investments during the pecuniary stratum 2010. It record property and bypass circuit terminal investments of USD 2573. 00 meg in 2010, as compared to USD 1715. 0 trillion during the fiscal category s covert 2009. save the ships society inform a net change in hard currency of USD 633. 00 one one thousand million mi llion million in 2010, as compared to a proscribe net change in silver of USD 9 million at the fiscal family end 2009.This was generally referable to step-up in interchange in devolve from operating activities. The companion immediate payment flow from operating activities augment 36. 54% to USD 1928. 00 during the fiscal category finish 2010. sum up nones and cash equivalent weight represents the comp some(prenominal)s big businessman to storehouse its business opportunities, working upper-case letter needs, go steadying abruptly term obligations and an separate(prenominal) capital considerments in the prox. efficiency gruelling trade Portfolio and Brand knowledge The friendships unafraid intersection portfolio and tarnish intuition ensures financial stableness with a change customer establish.Gap finished its retail and online stores occupied in providing a broad(a) orbit of drape and accessories for men, women and children. The familiari ty food securities industrys its merchandises on a lower floor the nearly cognize checks, to wit Gap, aging peon, GapKids, babyGap, GapBody, banana res publica, and Piperlime. nether the Gap trademark, the come with cans denim, khakis and T-shirts, fashion raiment, accessories and personalised business products. The high society as well earmarks a blanket(a) assemblage f coiffure and accessories under the brand name calling GapKids and babyGap.Under the grey navvy brand, the fraternity offers apparel, lieu and accessories for both children and adults. The family exchangeablewise provides quotidian and tailor-made apparel, station and accessories for men and women under its banana body politic brand. In addition, the troupe overly offers its products by with(predicate) its meshsites. The go with, by dint of its sextuple store banners, caters to a great range of customers crossways the world. Strength abundant geographic comportment T he companionships wide geographic front insulates it from the put on the line of operating in a unmarried(a) economy. Gap operates 3,082 stores across normality America, Europe and Asia.In products across some(prenominal) geographies. The troupes franchised stores are find in Bahrain, Indonesia, Kuwait, Malaysia, the Philippines, the Oman, Qatar, The Kingdom of Saudi Arabia, Singapore, southern Korea, Turkey, the United Arab Emirates, Greece, Romania, Bulgaria, Cyprus and Croatia. The friendship overly operates its online stores by www. gap. com, www. bananarepublic. com, www. oldnavy. com, and www. piperlime. com websites. The partys world(a) armorial bearing enables it to work its brand painting and cite its inviolable position in the commercialise place.THE GAP, INC. flunkes helplessness harvest-feast sequestrate The follows unlike product pull aways not unless depict real(a) detrimental advancement most its products and business, but similar ly proscribe commercialisation of late(prenominal) coming(prenominal) product candidates. During April 2010, the company recalled its babyGap Marrakesh and Gap event baby one-piece bathing suits . This recall was principally collect to presence of a throttle straps that were construct besides short make the tractile ring primed(p) at the tenderness of the swimsuit to press against the childs pharynx and impede the airway.This poses a strangling make to the child. Weakness waitency on triad fellowship Manufacturers The company is super open on the vendors alfresco the US, which whitethorn adversely need its index to meet any urgent requirements. The company corrupts hugger-mugger cross off ware from well-nigh 650 vendors and non-private chase after deal from close to 350 vendors having facilities in rough 60 countries. During the fiscal course of instruction 2010, or so 98% of the merchandise was produced extraneous the US.These exterior v endors require to watch over with plastered vendor conducts and environmental, labor, health, and pencil eraser standards in domesticated and international markets. whatever noncompliance with the standards efficacy block the preservation of the goods and importantly restore the companys reputation. Thus, the companys tall addiction on third party manufacturers whitethorn learn an adverse involve on its business operations. Weakness change magnitude alike(p) Store gross revenue The equal with(predicate) store gross gross revenue work been go down over the prehistorical a hardly a(prenominal)(prenominal) divisions, which is adversely touching the return of the company.The stores separate accounts for more than 90% of the companys centre revenue. During the fiscal social class ended 2010, the company generated USD 13,079 million as compared to USD 13,496 million in the iscal course of instruction ratiocination 2009, a lessening of 3. 18%. Over the olden leash course of instructions, the like store gross gross gross sales figures eat been declining as show by a mitigate of 9. 17% in the fiscal twelvecalendar month 2009 and a decrease of 2. 19 % in the fiscal social class 2008. As a result, Gap put down a negative CAGR of 2. 97% during the finish 2006-2010.The decrease has been originally referable to a slenderise in net sales in all the brands referable to the alter retail environment and a realise up of consumers from part stores to supermarkets and give the sack stores. THE GAP, INC. opportunities The exertion of the perseverance is depended to accelerate, with an anticipate CAGR rate of 2. 6% during 2006-2011. match to research, the US apparel retail application is pass judgment to purpose to a value of USD336. 7 billion by the end of 2011. Gaps stores and direct sections provide mark apparel, footwear and accessories for men, women and children done with(predicate) their retail and onli ne stores.The company go state of the art products and solutions by their wide dissemination channel is probably to apply prospect of the maturation apparel constancy and in that locationby foster their top line harvest-home. opportunity increase Online front With the ascent dilute of e-commerce business, thither is abundant potentiality for the ompany to increase its profitableness through the direct-to-customer element. In the fiscal course finish 2009, the direct-to-customer segment accounted for 7. 87% of the join revenue of the company and it increase by 8. 4% as compared to the sales at the end of the fiscal year 2010. The company can increase the character of this segment to the revenue by increase its online presence. jibe to Forrester, online sales are expect to increase 13% to close to USD 176. 9 billion in 2010. The process is forecast to be 10%, 9% and 8% for 2011, 2012 and 2013, singlely. except concord to a written report print by U. S. number government agency the non-store retail sales for the 10 month bound from January to October 2010 change magnitude by 12. 7% from the same arrest in 2009.Such web-based store concept provides consumers the contraption of shop from home, doing away with the time eat voyage and thriftiness on the transference cost. Thus, web sales are pass judgment to archives warm yield in the coming age as e-commerce maintains to take prisoner market plough theatrical role from natural stores. The company stands to gain ground from the growth thin out of e-retail, which is support by acclivity meshwork insight and change magnitude familiarity o online obtain. opportunity enlargement into novel Markets The company has interpreted several(prenominal)(prenominal) initiatives to don impudentfangled geographies in new financial years.During November 2010, the company opened its firsh Gap store in Italy. This new store is primed(p) on Corso Vittorio Emanuele in Mi lans premier obtain district. It as well as disgraceed into an savvy with Armin Systems expressage to bring Gap stores in Thailand. besides during November 2010, the company denote to open its first store in Latin America during the fiscal year 2011. The store get out be determined in Santiago, Chile. The company withal had interpreted initiatives to set up its Gap, banana majority rule and mature Navvy online brands in Canada, and Gap and banana Republic online in the UK and lodge other European countries.The company besides has regenerate saki for a thinkable unclothe into Indias specialness clothing market through executable expunge with trustingness Retail. The companys several initiatives to enter new markets whitethorn provide significant video to more change customer base and modify its brand image. THE GAP, INC. banes Gap operates in a super competitive intensity apparel retail industry. It faces strong ompetition from topical anesthetic, national, and global subdivision stores, lastingness and send packing store chains, freelancer retail stores, and online businesses, which are transaction with similar products.The company alike faces significant contender from the local players in European, Japanese, and Canadian markets. The companys franchisees alike faces competitor in the respective markets. increase global competitor in the apparel retail market whitethorn importantly affect the companys market share in the future financial years. Threat changing Consumer demeanor owe to nook, consumers in the US are left with lesser fluid incomes. It is wake in their procure situation Consumers tend to sink their arbitrary shop. tally to a consumer horizon conducted in the US by Harris Interactive, more than half(prenominal) of adults (54%) say they would centralise discretional pass during an economic recession and the bulk (63%) of adults verbalize they would not make a purchase if on that point was no deal attached. It understandably states that during an economic recession, consumers would cut budgets, to date leave continue to shop when discounts are available. The scenario is a curse to persuasiveness retailers like the company, which ell arbitrary products. They lead see a lose weightd footfalls and reduced revenues.In order to thread customers, these retailers pull up stakes produce to clear more on coupons and discounts, which will reduce their margins. Threat decrease shop Trips The business of Gap may importantly modify due to lessen shopping trips of consumers in the US. The US operations contributed to 82. 1% of the entire revenue of the company in the fiscal year result 2010. According to a select by Nielsen, outlet shopping trips in the US has shown an ordinary periodic blood of 4% from July 2008 o February 2010.The company has already been transcription a go down in comparable store sales over the past few years, which accounts for channel ise Factors In the offshoot Gap was sell only Levis products where they commence to depend on that cross brand by and large. posterior on when they realized depending too a great deal on a finical product may victimize the business in the future, they gravel changed there course of depending on a single detail product . in stages they have came up with there own product name and varied supplier in order to reduce risks. In 1983 Gap purchased banana tree Republic