Shopping At The Gap

Since my market view is somewhat neutral I decided to put on a pair trade. I am long Gap Stores and short XRT calls, which is the retail equal weighted index, as a pair trade. Gap trades at 10 times 2010 estimates net of cash. They are a retailer that actually returns cash to shareholders via dividends and buybacks. The merchandise has gotten much better. I have recently been at the Gap a few times since my son was born and I actually walked out with something for myself. There has been a large improvement since the last time I was there many years back.

I am interested to hear what readers think about shopping at the Gap?

4 comments:

Tsachy Mishal said...

Im interested to hear what readers think about shopping at the Gap?

Anonymous said...

The last time I went into a Gap I couldn't find the black turtlenecks and black t-shorts I was looking for. I don't understand how Gap is positioned or what sort of customer it is after, but in my own shopping when I am looking for casual clothes I have replaced them with Land's End and Joseph Bank. Gap Kids and Old Navy have better defined niches. None of this means Gap is not a good company. I am partial myself to JOSB.

Anonymous said...

Hi Tsachy, I also like the gap, nothing of outstanding quality but prices are great and in times of uncertainty I guess people prefer to shop $29 Jeans to the Abercrombie-stuff.

Anonymous said...

I thought GAP is considered good because they own Old Navy which is where all the people shop now since America became a 2nd world country in 2008.