- After years of diminishing profits, Gap is reconnecting with young consumers
- Recent strong performance by Gap's budget and sportswear labels also bodes well
Tip style
Speculative
Risk rating
Medium
Timescale
Long Term
Bull points
- Riding the Y2K fashion revival
- Persistently low rating
- Smaller labels discarded
Bear points
- Squeeze on mid-priced clothing
- Balance sheet much weakened
Once upon a time, kids would have dreaded having to wear their parents’ hand-me-downs. Today, mum and dad’s old threads are the hottest thing in fashion.