Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, March 8, 2019

Article Excerpt

GAP INC., $25.93, symbol GPS on New York, is a multi-brand apparel retailer based in San Francisco. It owns Old Navy, The Gap, Banana Republic, Athleta, Intermix and Hill City. The stock jumped as high as $30.80 last Friday, from $25.30, before settling back to today’s price. The rise came after the company announced that it would spin off its Old Navy brand. Its remaining brands will stay with Gap. Old Navy’s top executive is Sonia Synga, who will serve as CEO for the new spinoff. Current Gap Inc. CEO Art Peck will remain in charge of the brands left in place. The spinoff is expected to take place sometime in early 2020. Based on proforma numbers provided by the company, the most-recent annual revenues for Old Navy were $8 billion. Revenue for the other brands at Gap Inc. contributed $9 billion in overall sales. For the three months ended February 2, 2019, Gap’s revenue fell 3.2%, to $4.62 billion from $4.78 billion a year…