Topic: How To Invest

Q: Pat, can I get your advice on whether The Gap is a buy or not? Thank you.

Article Excerpt

A: The Gap Inc., $23.15, symbol GPS on New York (Shares outstanding: 375.1 million; Market cap: $8.7 billion; www.gapinc.com), sells clothes, accessories, and personal care products for women, men, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The Gap currently has 2,562 company-operated stores and 998 franchise store locations. Company-operated stores are in the U.S., Canada, Japan and Taiwan. Gap also has franchise agreements to operate stores in Asia, Europe, Latin America, the Middle East, and Africa. Plus, it has an agreement with a third party, Baozon Inc., to operate Gap Taiwan stores as a franchise partner. In addition to sales through those stores, Gap also sells online, offering delivery and pick-up services. Among its brands, Old Navy is a North American value-clothing brand that aims to offer affordably priced, fashionable products. Old Navy has 1,243 stores. The Gap brand focuses on modern American style and originality. It has 472 stores in North America and 134 in Asia. The brand…