If Gap Spins Off Athleta, It Would Be a Big Mistake

Following news that workout apparel brand Fabletics was hiring banks and advisors in preparation for an initial public offering, speculation emerged that Gap (NYSE: GPS) might want to spin off its similarly situated Athleta brand.

Athleta is arguably the hottest property the retailer owns at the moment, and the one demonstrating the greatest growth potential. It would be a mistake for Gap to shed the business. While Athleta would be an interesting investment on its own, Gap itself could be mired in mediocrity as a result of the split.

Image source: Gap.

Source Fool.com