Gap (NYSE:GPS) will be releasing earnings shortly. Ponder this Bear Case Scenario:
Input costs are volatile and unpredictable. Add in some labour uncertainty equals margin risk. Not what you want to hear from Gap.
Strong competition from discounters is eroding previous advantages as Gap becomes a price conscious buy.
Specialty retailing is competitive and easy to enter. Pop up stores testing concept constantly arising. Gap is cool and therefore a target. It is not being overwhelmed but it does not seem to be the dominant leader that is wowing the marketplace.
George Gutowski writes from a caveat emptor perspective.