Gap Inc. (GPS) unveiled a plan to expand business to gain market
share, saying it will invest more in online and international
operations, including returning to television after a two-year
absence.
The casual-clothing retailer, which is working through a
turnaround, posted tepid second-quarter results as sales fell in
all four of its segments. It has focused on maintaining leaner
inventory and traffic-driving promotions.
Thursday, the company said it plans to open its first namesake
store in China next year, expand its international outlet stores
and launch U.K. and Canadian online stores.
A new store design for its long-struggling Old Navy chain will
be in about 50 stores by the end of this year, the company said.
The chain has seen sharp sales gains in recent months.
Gap has seen some signs for optimism lately. In September, it
posted a 1% drop in same-store sales, representing a slowing in its
rate of decline.
Gap shares were up about 0.1% premarket at $23. The stock
through Wednesday was up 72% so far this year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com