Gap’s Troubles Aren’t Over, but Scrapping Its Old Navy Spinoff Is a Step Forward
On Jan. 16, Gap (NYSE: GPS) announced its decision to cancel the spinoff plans for its Old Navy brand. Investors seem pleased with the news as the stock has enjoyed small gains in the days following the announcement.
Image source: Getty Images.
Though this decision is a clear step in the right direction, the embattled company still faces plenty of headwinds. Mall closures, retail competition, and the absence of a permanent CEO will continue to put the brakes on any significant share gains in the near term.
Source Fool.com