<2> Gap’s Underperforming Brand Weighs on Retailer’s Stock
<3> The Smallest of Gap’s Brands: A Flash Point for Investors
Gap’s (GPS) stock has been under pressure in recent years, and one of the main reasons is the underperformance of its smallest brand. Despite efforts to revamp its image and improve sales, the brand continues to be a drag on the retailer’s stock.
The Brand in Question: Gap’s Athleta
Athleta is a women’s activewear brand that Gap acquired in 2009 for $150 million. At the time, the brand was seen as a way for Gap to tap into the growing market for high-end activewear. However, despite its efforts to expand the brand, Athleta has struggled to gain traction and has consistently underperformed compared to its peers.
Why Athleta is a Problem for Gap
There are several reasons why Athleta is a problem for Gap. Firstly, the brand has struggled to compete with the likes of Lululemon (LULU) and Nike (NKE), which have dominated the market for high-end activewear. Secondly, Athleta’s sales have been impacted by the rise