Gigai'S Brand Performance Is Facing A Huge Crisis.

In the first two months of fiscal year 2015 (beginning in February 1, 2015), the sales of Gap cap Pu brand same store all recorded a 7% decline, which was restored in 2012 and early 2013. One of the four brands of fast fashion has entered the doldrums after entering 2014.

Fargo Securities Paul Lejuez, an analyst with Wells Fargo securities, said that in the past 10 years, Gap's brand has gradually lost its market share and it has become increasingly difficult to recover.

Although the Gap brand has become the second largest brand of Gap Inc. Cape group, the meaning of the same brand is self-evident to the group. Over the past 15 years, the resigning of 3 chief executives has been more or less unable to completely reverse the situation of Gap's brand.

In 2002, the Millard Mickey Mickey Drexler, who was fired in 2002 and now leads the J. Crew Group Inc., is needless to say; the Paul Pressler to replace Millard Drexler is also unsuccessful because it failed to bring the company out of the predicament in 2007, and the replacement of the company was left in February this year.

Fargo Securities, an analyst at Wells Fargo securities, Paul Lejuez, worries about the brand of Gap cover brand, not only because of the continued decline in brand store sales, but also the sales per unit area of the brand, Paul Lejuez estimates that the sales of Gap cap Pu brand stores are less than 300 dollars per square foot, even if e-commerce covers Gap, the sales volume per square foot is lower than $400, which is 7% lower than that in 2005, and the sales volume of the entity store is about 325 dollars per square foot, which is 20% lower than that in 2005.

Investment website Trefis to Gap cover Pu brand.

Similarly, despite the negative attitude, the website said that although the Easter holiday was ahead of schedule this year, the sales of Gap cap Pu brand same store still fell by 7% compared with the same period last year, indicating that the Gap brand has no advantage in terms of price and fashion, and gradually loses its customers.

On the issue of fashion, Art Peck, who has just succeeded Glenn Murphy as the new CEO of Gap Inc. cover group in February 1, 2015, also acknowledged that there were some problems in the products of Gap cover brand.

Art Peck 2 at the end of the month said that the problem of the Gap cover Pu brand is mainly in the coat part, which is unsalable, the main problem is the style is ugly and not enough to repair the body.

Art Peck said Gap's performance was not satisfactory to everyone. The group was ready to fine tune the women's clothing in the flagship store. He also pointed out that restructuring the Gap cover brand is still the priority of the group.

The Trefis.com report points out that although the US economy has recovered, consumers are still cautious about premium products, mainly looking for consumer discount products and department stores and supermarkets.

In addition, the investment website said it had to pay attention to the current strong dollar. Compared with other fast fashion groups, the Gap Inc. Cape group, which is located in the US and its main market, will be negatively affected.

Trefis.com gave Gap Inc. Cape group a target price of $51, a premium of about 25% compared to the group's closing price of $40.61 on Wednesday, and Fargo Securities Wells Fargo securities gave the group's

It is also a partial rating for the negative side.

In view of the sluggish brand of Gap's Cape brand, the negative evaluation of the two investment agencies that did not give Gap Inc. cover Pu Group was due to the strong rise of the group's cheap brand Old Navy Old Navy in recent years. In March, the brand sales rose 14% in the same store, stimulating the group's total store sales in March, an increase of 2%, and the sales of Gap Inc. cover group in March also increased by about 1%, from 1 billion 510 million US dollars in the same period last year to 1 billion 530 million US dollars.

Unresolved Gap

The problem of Art Peck can be described as vigorous and vigorous. At the end of January 2015, the famous designer Rebekka Bay was cleaned from the position of creative director and executive vice president of the brand of Gap Gap, and the designer from the world's second largest clothing retailer H&M Hennes & Mauritz AB (HMb.ST) has been placed high hopes by the group.

Subsequently, Art Peck immediately hired Wendi Goldman instead of Rebekka Bay.

Art Peck said the company immediately adjusted its management after finding that the Gap Cape brand failed to anticipate improvements.

Wendi Goldman will act as executive vice president of product design and development team of Gap cover brand. Before joining Gap Inc. group, Wendi Goldman has been serving the chief product officer of light luxury brand C. Wonder, which is winding up. It has served for more than 10 years in the famous clothing group L Brands (Goldman) service, and is responsible for the design work of the secret female subsidiary line brand.