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
Gap Inc. Stock
€19.74
1.400%
With 18 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 23 € shows a slightly positive potential of 16.5% compared to the current price of 19.74 € for Gap Inc..
