Analysts Wells Fargo and JPMorgan opine that Gap Inc is ready for a comeback amid an attempt to turn around the business. The company recently sold its kidswear brand Janie and Jack to Go Global Retail, a fashion and retail investment platform.
Gap acquired Janie and Jack in 2019 amid the Gymboree bankruptcy.
As part of Gap Inc’s Power Plan 2023, and exemplified by this transaction, the company is prioritizing strategic focus and resources behind the growth and potential of our billion-dollar brands in Old Navy, Gap, Banana Republic and Athleta. said Sally Gilligan, Head-Strategy.
Gap grew by over 300 per cent over the past 12 months. Its profit and sales have been steadily improving since the quarter ended in July, though analysts forecast a loss for the quarter that ends in April.
Analysts Well Fargo expects demand for new clothes to jump with vaccinations increasing and a massive accumulation of consumer savings. The firm believes as outside-the-home activities are more widely adopted, a flood of pent-up demand could drive a major rebound in apparel by 2021.