The long-suffering Gap is generating quite a lot of good buzz these days. It’s pulling out all the stops celebrating its 40th anniversary, from hosting a simultaneous acoustic concert in its stores nationwide to outfitting the traders on the New York Stock Exchange on Friday in jeans from its latest collection. The collection itself, by the way, is part of the celebration: It’s called Gap 1969 Premium Denim Jeans in honor of the chain’s debut year. The jeans, at least the ones I’ve seen, are stylish and fit well -- and they’re priced just right, not value by any means, but an affordable splurge for sure.
Gap also generated some cheer from its second-quarter earnings report, which was slightly above analysts’ estimates and also showed improved margins. On Friday, it was upgraded to "outperform" by FBR Capital Markets and raised to "buy" by KeyBanc Capital Markets.
I’m a realist and I know Gap has a long way to go before it regains its dominance. In fact, it may never do so given how dramatically the playing field changed during the chain’s hibernation. Other, more nimble competitors from the homegrown Aeropostale to the Swedish import H&M, have proved themselves much more adept at responding to customers’ ever-changing fashion sense. But I’m rooting for the Gap, which finally seems to be showing some signs of life. Let’s just hope those green shoots are the real thing, and not crab grass.
What do you think: Is the Gap on the comeback trail?
