GAP INC. EXPANDS OUTLET BUSINESS TO CANADA
First Stores Open Today in Ontario
SAN FRANCISCO – October 24, 2008 – Gap Inc. (NYSE: GPS) today opened its first Banana Republic Factory Store and Gap Factory Store in Canada. The openings will broaden the accessibility of Gap Inc. brands, while reaching new value conscious customers in the Canadian market.
“During our meeting with investors last week, we described our focus on improving our core brands while we also identified growth opportunities in our International and online businesses,” said Art Peck, president of Gap Inc. Outlet and EVP of Corporate Strategy and Operations. “Bringing our Outlet brands to Canada is a perfect next step in our growth strategy, as we match our Canadian customers with the strongest value expressions of our brands.”
The Outlet division stores will be named ‘Factory’ stores in the Canadian market and will offer Canadians a combination of style, quality and value along with on-trend fashions. Banana Republic Factory Store customers can shop affordable women’s and men’s wear to work and weekend looks. Gap Factory Store customers will find American classic clothing and accessories for women, men, kids and baby at surprising prices.
Started in 1994, the Outlet division has grown to several hundred Banana Republic Factory Stores and Gap Outlet stores currently in the United States, United Kingdom and Japan. The first stores in Canada are located at the Vaughan Mills Mall in Ontario.
Gap Inc. operates 188 Gap, Banana Republic and Old Navy stores across Canada, including the two Outlet stores just opened today.
This press release contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding growth opportunities in our international and online business.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company’s actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following: the risk that our franchisees will be unable to successfully open, operate and grow the planned Gap and/or Banana Republic branded apparel and accessories stores; the risk that the company will be unsuccessful in gauging fashion trends and changing consumer preferences; the highly competitive nature of the company’s business internationally and its dependence on consumer spending patterns, which are influenced by numerous other factors; the risk that the company will be unsuccessful in implementing its strategic, operating and people initiatives; the risk that adverse changes in the company’s credit ratings may have a negative impact on its financing costs, structure and access to capital in future periods; the risk that changes to the company’s IT systems may disrupt its operations; the risk that trade matters, events causing disruptions in product shipments from China and other foreign countries, or an inability to secure sufficient manufacturing capacity may disrupt the company’s supply chain or operations; the risk that the company’s efforts to expand internationally through franchising and similar arrangements may not be successful and could impair the value of its brands; the risk that acts or omissions by the company’s third party vendors, including a failure to comply with the company’s code of vendor conduct, could have a negative impact on the company’s reputation or operations; and the risk that the company will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits; any of which could impact net sales, costs and expenses, and/or planned strategies. Additional information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2008. Readers should also consult the Company’s quarterly report on Form 10-Q for the fiscal quarter ended August 2, 2008.
These forward-looking statements are based on information as of October 24, 2008. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
About Gap Inc.
Gap Inc. is a leading global specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Piperlime and Athleta brand names. Fiscal 2007 sales were $15.8 billion. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Japan and Ireland. In addition, Gap Inc. is expanding its international presence with franchise agreements in Asia, Europe, Latin America and the Middle East. For more information, please visit gapinc.com.