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Gap is still optimistic about the Chinese market, will open 40 stores in China

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Gap is still optimistic about the Chinese market, will open 40 stores in China

Release date:2017-03-27 00:00 Source: Click:

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Gap group released 2015 fourth quarter earnings, net profit of $214 million, compared with the same period in 2014 fell by 33%, which is lower than Wall Street analysts had expected Gap earnings expectations.

Among them, GAP group's decline is the heaviest Banana Republic, sales fell to 14%, Old Navy fell by Republic, Banana fell by 14%, while the Gap brand also has a decline of 3% in.

It is reported that, due to dismal performance, in June 2015, Gap announced the closure of 175 stores in the North American market, accounting for about $1/4 of the total number of retail stores in North america. And in the North American market shut shop, layoffs practice is different, Gap said in 2016 will open 40 new stores in the Chinese market, is still optimistic about the Chinese market. Currently, Gap has about 3300 stores in the world and more than 400 stores, the Chinese market is relatively small.

Gap North America Gap performance clothing brand in 2014 April, Gap Inc (GPS) said in its annual investor conference, Chinese will become its biggest growth opportunities, and is expected China market sales in three years from $300 million in 2013 to $1 billion. But on the current Gap performance report, far lower than expected.

Despite the significant decline in performance, but as of yesterday's close, GPS's closing price in U.S. stocks rose 0.03%, to $30.18.

It is understood that in the international fast fashion brand, Gap belongs to a group of early access network shopping brand, which began in 2010 and China local company Shanghai garment is cooperation by the latter on behalf of the operators of online business, from 2012 to 2013, Gap online performance increased significantly. In the Gap announced February 1, 2014 earnings, the group's annual online sales of $2 billion 260 million, an increase of 21%. But subsequent quarterly reports, the performance of the gradual decline.

Gap CEO David Parker has publicly said, Gap brand situation reversed slower will affect the profit of its new fiscal year.

Some analysts believe that Gap faces fierce competition from H&M and win business network UNIQLO and other fast fashion businesses in the supply chain, speed, Gap landed in the sister brand, which makes them unable to quickly to hot or cold fashion in response, can respond quickly to H&M and UNIQLO. In addition to clothing design lackluster Gap, brand appeal as before.


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