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The Gap Inc.

The Gap Inc. Michael Yang. Lemons LLP. Executive Summary. BUY. Strong multi brand platform Valuation Continued global expansion. Lemons LLP. Overview. Global clothing and accessories retailer founded in 1969 in San Francisco. Largest speciality retailer in US

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The Gap Inc.

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  1. The Gap Inc. Michael Yang Lemons LLP

  2. Executive Summary BUY • Strong multi brand platform • Valuation • Continued global expansion Lemons LLP

  3. Overview • Global clothing and accessories retailer founded in 1969 in San Francisco. • Largest speciality retailer in US • 135,000 employees and 3,076 stores worldwide Lemons LLP

  4. Industry Outlook • Consumer empowerment is quickly decreasing brand loyalty • Fast fashion continues to be the dominant strategy • Consumers spend through multiple channels • Increased discounting to drive sales Lemons LLP

  5. Competitive Advantage “Wear our passion” Innovative designs Margin maximization Focused branding Socially responsible Global Expansion Lemons LLP

  6. Key Facts Customers: Gap brands appeal to the entire market while focusing on trendy twists of classic designs for all ages while focusing on 18 to 35 Products: Gap leverages multiple price points to maximize price potential of products to avoid sale merchandise Competitors: Gap’s fresh designs avoid isolating any consumer or focusing on single markets • Catalysts: • Old Navy in China • Foothold in Brazil • Development of Intermix and Athleta Lemons LLP

  7. StockPerformance S&P500 Lemons LLP

  8. DCF Valuation Discounted Cash Flow Value of $49.47 Lemons LLP

  9. InvestmentRisk • Falling out of favour • Failure to expand into global markets • Increased operating costs • Shrinking margins • Failure to adapt to trends Lemons LLP

  10. Recommendation Product Offerings • Target Price $50 Global Expansion Valuation 22.6% Growth in 12 months Lemons LLP

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