Gap Stores is about to release earnings. Ponder the Bear Case Scenario:
Retailing is a difficult blood sport which often has the characteristics of a street brawl with knife fighting. Gap is in the middle of all this.
Gap had a huge advantage in style but its niche has been picked away at. Gap has not picked away at someone else’s niche. So no counter-attack or blocking move.
Commodity prices and inflation are subject to inflation. Retail pricing is increase resistant. Train wreck waiting to happen.
Gap products are too easily copied in all their attributes.
George Gutowski writes from a caveat emptor perspective.