Yahoo Finance Gap (GPS) Partners with Mattel to Enhance Collection
The Gap, Inc. GPS is consistently making efforts to boost assortments across its brands. In latest developments, the company unveiled a new apparel collaboration with Mattel, inspired by the latter’s brand portfolio and its signature icons having dressed generations since 1969. Being a key global toy organization, Mattel is the owner of among the strongest catalogs of children’s and family entertainment franchises in the world.
We note that the first of several upcoming Gap x Mattel product drops are likely to be the Gap x Barbie collection. The collection includes tees, skirts, logo hoodies, denim, button-downs and accessories along with pet apparel. These are designed on the company’s product icons featuring classic Barbie branding and Gap’s signature arch typeface.
Beginning May 23, the Gap x Barbie collection will be available for shopping on gap.com and in certain company’s stores globally along with select styles offered through Mattel Creations, Mattel’s collector and direct-to-consumer platform. Other Gap x Mattel collaborations will be revealed later this year, which will include apparel based on the world’s top-selling toy, Hot Wheels. The company’s credit card holders get the options to access and shop collections online before the official launch dates. Markedly, Gap’s tie up with Mattel represents two key brands collaborating on products.
What’s More?
Gap is gaining from continued momentum across its Athleta brand. The Athleta brand’s values-driven active and lifestyle categories, increased digital marketing investments and focus on product strategy have been aiding sales. In fourth-quarter fiscal 2022, net sales for the Athleta brand surged 51% from the pre-pandemic levels. Segmental results gained from continued share gains.
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Increased focus on performance active as well as active lifestyle products to capitalize on the evolving shopping trends also bodes well. It has also emerged as one of the fastest-growing women's athleisure brands in North America. Driven by these factors, Athleta remains on track to reach $2 billion in net sales by fiscal 2023.
This Zacks Rank #3 (Hold) company is aggressively undertaking cost-management actions in the fiscal fourth quarter. The company has been making efforts to simplify and optimize its operating model and structure, including increasing spans of control and declining management layers to improve the quality and speed of decision-making and creating a consistent organizational structure across all four brands. These actions are expected to generate $300 million in annualized savings, of which the half is expected to be realized in the latter half of fiscal 2023. The company is also likely to incur severance and other related costs from the optimization plan.
Shares of the company have lost 27.2% in the past three months compared with the industry’s 12.2% drop. We note that Gap has been reeling under inflation woes and drab demand. For fiscal 2023, net sales are anticipated to decline in the low to mid-single-digit range.
Here are 3 Key Stocks for You
We have highlighted three top-ranked stocks, Urban Outfitters URBN, Stitch Fix SFIX and Boot Barn BOOT.
Urban Outfitters, a retailer of fashion apparel, accessories and footwear, currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 4.3% and 41.7%, respectively, from the year-ago reported figures. URBN delivered break-even earnings in the last reported quarter.
Stitch Fix, a leading online personal styling retailer, currently sports a Zacks Rank #2.
The Zacks Consensus Estimate for Stitch Fix’s current financial-year sales and EPS suggests growth of 1.2% from the year-ago reported figure. SFIX delivered a negative earnings surprise of 3% in the last reported quarter.
Boot Barn, a fashion apparel and accessories retailer, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales suggests growth of 8.2% from the year-ago reported figure.
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The Gap, Inc. (GPS) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
