The Gap Inc.

Overview Key strengths Key risks Diversified portfolio of well-recognized brands. Operates in the highly competitive fashion apparel retailing sector. Modest cash flow generation and conservative cash management. Prone to freight and supply chain disruptions amidst labor and wage pressures. Geographic diversification with presence in more than 40 countries. Increasing S&P Global Ratings-adjusted leverage amid weaker operating performance. Operating results at Gap's Old Navy brand, which contributes roughly half of total company revenue, weakened significantly as brand revenue declined 9.3% in 2022 compared to the previous year, losing share in the first half of the year, and experiencing weakness in its kids and baby segment. Old Navy's comparable sales in the first quarter ended April 29, 2023, declined 1% due to

...We expect The Gap's operating performance to remain challenged over the next 12 months amid a soft economic backdrop. Operating results at Gap's Old Navy brand, which contributes roughly half of total company revenue, weakened significantly as brand revenue declined 9.3% in 2022 compared to the previous year, losing share in the first half of the year, and experiencing weakness in its kids and baby segment. Old Navy's comparable sales in the first quarter ended...

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