How Does The Brand Go Out Of The Puzzle? The Prospects Of Performance Recovery Are Unpredictable.

The overall negative evaluation of Cape group is due to the strong rise of the group's cheap brand Old Navy, the Old Navy in recent years. In March, the brand sales rose 14% in the same store, which stimulated the overall sales of the same store in March, an increase of 2%. In March, the sales of Gap Inc. cover group 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.

In view of Gap Inc. (GPS), the same name of the cap Gap group, the sales of the same store, the same store, continued to decline. Fargo Securities said that the new chief executive Art Peck and Gap Gap brand new global CEO Jeff Kirwan tried to restore the task of the company.

In the first two months of fiscal year 2015 (beginning in February 1, 2015), the sales of Gap and its sales were all down 7%, which was restored in 2012 and early 2013. One of the four brands of fast fashion entered the doldrums after entering 2014. Paul Lejuez, a Fargo Securities analyst at Wells Fargo securities, said that looking back over the past 10 years, Gap's brand has gradually lost its market share, making it harder 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 the Gap brand. In 2002, J. Crew Group Inc., now struggling to lead the Group Inc., is struggling to speak. It is unnecessary to say that the Paul Pressler, which took over Millard Drexler, is also being fired because it failed to bring the company out of the predicament. In 2007 this year, she left the company.

Fargo Securities, an analyst at Wells Fargo securities, Paul Lejuez, is concerned not only with the continued decline in brand store sales, but also the sales per unit area of the brand, Paul Lejuez estimates that the sales volume of the Gap full store is less than 300 US dollars per square foot, even if the e-commerce includes Gap, Paul, and the sales volume per square foot is also lower than US $400, which is 7% lower than that in 2005, and the sales volume of the entity store is about 325 US dollars per square foot, which is 20% more than that in 2005.

The investment website Trefis.com also held a negative attitude towards the recovery ability of Gap's brand. The website said that although the Easter was ahead of schedule this year, the Gap sales of the 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 just succeeded Glenn Murphy as the new CEO of Gap Inc. cover group in February 1, 2015, also acknowledged Gap at the annual earnings release conference. Cape brand Some products have problems. Art Peck at the end of February indicated that the problem of Gap's brand was mainly seen in Jacket part The main problem is the unsightly style and lack of self-cultivation. Art Peck said Gap's performance was not satisfactory to everyone, and the group was preparing for its flagship store. Women's wear Fine-tuning, he also pointed out that restructuring the Gap cap brand is still the priority of the group.

Unresolved problem of Gap cover Pu brand Art Peck can be described as vigorous and vigorous. By the end of January 2015, the famous designer Rebekka Bay was cleaned from the position of creative director and executive vice president of the Gap Gap brand, 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 be the executive vice president of product design and development team of the Gap Gap company. Before joining Gap Inc. group, Wendi Goldman has served the chief product officer of the light luxury brand C. Wonder, who has been in liquidation, and has served for more than 10 years in the famous clothing group L Brands (R) service, which is responsible for the design work of the "secret female subsidiary line brand" in Vitoria.

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, while Fargo Securities Wells Fargo gave the group a partial negative rating.