Among specialty retailers, Johnson of Customer Growth Partners thinks Gap will have an "outstanding" holiday season. It has done a better job of controlling costs and boosting earnings than competitors, and has launched a big advertising and marketing campaign. Gap trades for 15 times fiscal 2010 earnings estimates of $1.50 a share, well below the group's average multiple of 21. Inventories fell by 13% in the second quarter, Berman notes, far more than the 7% drop in sales. Gap trades for 22.14, just below its 52-week high.

Buy -- Price 21.17 on Oct. 6
by Jesup & Lamont

Our 25 target is based on a 16 times price/earnings multiple on our 2010E-EPS of $1.53 ... [or] 18% upside from the Oct. 5 close. We believe the multiple is justified, given the many signs of improving performance... . We believe that 2004 peak margins should be visible in 2010, implying EPS of $1.61, or 16% growth over the $1.39 projected for "09. We [still] think there's more reward than risk at current levels. Market cap: $14.7 billion.

im an employee

In an Aug. 6 blog post, Cramer wrote that the media had prematurely predicted a poor back-to-school season for retailers such as Macy's, Target (TGT), Gap (GPS) and JCPenney (JCP). "Back-to-school is looking very big," he wrote, "and given the low inventories, the cash flow could be tremendous here."

BR and GAP have notably better quality this season and everything is out of stock!

Against the Grain: Sell Gap!: Marek Fuchs warns traders not to break out the bubbly on Old Navy alone.
Click here to watch the video.

Cramer: Not Buying Gap: Jim Cramer doesn't buy Goldman Sachs Conviction Buy" of the gap and sees better retail names."
Click here to watch the video.

Cramer: Not Buying Gap: Jim Cramer doesn't buy Goldman Sachs Conviction Buy" of the gap and sees better retail names."
Click here to watch the video.

From a recent Mad Money show:"Keep looking. I don't want you to touch it. I don't like retail."

PE: 10 PEG: 0.85

No growth ahead

bad retail

Struggling retailer, weakening consumer.

They got it wrong and continue to not see the writing on the wall.

"Basically, there aren't many retailers that are able to do what they have done. In fact, most have run into problems. Wal-Mart [WMT], Home Depot [HD], and recently, Gap [GPS] have run into problems because they have high returns but haven't been able to compound them."

Rudderless mess. (Long overdue) management change only half complete. Founding family exerts too much influence. Lost its "fashion sense", IT systems weak, and culture not in tune with creating dynamic change.

Still not making any money.

I wish I knew.

Gap (GPS) reported very weak February results. Comparative-store sales, or sales at stores open at least one year, were down 4% last month companywide, and off 5% for the Gap division.

The company "has lost its groove," noted Carol Levenson, of the bond-analysis firm Gimme Credit, in a recent report. What's perplexing to Levenson and others is that the company continues to add floor space even as it is grappling with contracting sales and gross margins that are at five-year lows.

performance