Why Shares of Gap Inc. Jumped Today

Shares of Gap Inc. (NYSE: GPS) surged on Wednesday after the apparel retailer updated its long-term strategy. The plan includes a stronger focus on two of its brands, increased investments in e-commerce, shifting away from lower-productivity locations, and major cost savings thanks to increased efficiency. The stock was up about 5.7% at noon.

Gap plans to focus on growing its Old Navy and Athleta brands, both of which are performing better than its Gap and Banana Republic brands. The company expects Old Navy, a value orientated brand, to reach $10 billion of annual sales in the next few years. Athleta, an athleisure brand, is expected to cross the $1 billion annual sales mark in the same time frame.

Image source: Gap Inc.

Source: Fool.com