...New York (Standard & Poor's) Nov. 21, 2014--Standard & Poor's Ratings Services said today that we expect San Franciso-based specialty apparel retailer The Gap Inc.'s operating performance and credit metrics to remain relatively stable, despite its modest same-store sales decline in the fiscal third quarter 2014 and slightly lower full-year earnings expectation. We also view the new global heads for two of its three major brands as more reflective of the new CEO than of serious operating challenges. Overall, our ratings and stable outlook on Gap Inc. are unaffected by this news. We believe the specialty apparel industry will remain relatively soft in the remainder of 2014, given the heightened industry competition (especially from fast fashion and off-pricing retailers), sustained highly promotional environment in the U.S., and continuing cautious consumer spending on small-ticket purchases. However, we expect the company's continuing global expansion, ongoing enhancement on its omni-channel...
