Gap Inc. To Open First Gap Outlet Stores in China
Openings continue the company’s global expansion plan in the market
SAN FRANCISCO – September 20, 2012 – Gap Inc. (NYSE: GPS) announced today the planned opening of four Gap Outlet stores in China.
The opening of Gap Outlet stores supports Gap Inc.’s global growth strategy and commitment to have approximately 45 stores in China by the end of this fiscal year. With the second largest apparel market in the world, China is a cornerstone market for Gap Inc.’s international expansion.
“As we continue to execute on our expansion strategy in China, the time is right to open these Gap Outlet stores,” said Redmond Yeung, President of Gap China. “The value sector in China is relatively new and presents additional market opportunities. Opening Gap Outlet expands how customers in China can participate in the Gap brand experience.”
The first Gap Outlet store is scheduled to opens on September 22 in the Ningbo Outlet Mall. Quickly following are two additional Gap Outlet stores opening in Qingpu Bailian Outlet in Shanghai and the Jingjin Florentia Village in Tianjin. A fourth store will is expected to open in the Beijing area later this year at the Scitech Premium Outlets.
With the opening in China, Gap Outlet stores are will be in six countries worldwide, and feature product uniquely designed for the Outlet channel. Founded in 1995, Gap Outlet is one of the leading retailers in the outlet marketplace – providing refined, high quality American casual clothing at attractive price points.
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 statements regarding the following:
- Expected outlet store openings and timing;
- Global expansion strategies;
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 changes in general economic conditions or consumer spending patterns could adversely impact the company’s results of operations;
- the highly competitive nature of the company’s business internationally;
- the risk that the company or its franchisees will be unsuccessful in gauging apparel trends and changing consumer preferences;
- the risk that the company’s efforts to expand internationally may not be successful;
- the risk that the company’s franchisees will be unable to successfully open, operate, and grow their franchised stores in a manner consistent with the company’s requirements regarding its brand identities and customer experience standards;
- the risk that the company or its franchisees will be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying or terminating leases for existing store locations effectively;
- the risk that natural disasters, public health crises, political crises, or other catastrophic events could adversely affect the company’s operations and financial results;
- 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 its reputation or operations;
- the risk that the company will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits; and
- the risk that changes in the regulatory or administrative landscape could adversely affect the company’s financial condition, strategies, and results of operations.
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 January 28, 2012, as well as the company’s subsequent Quarterly Reports on Form 10-Q.
These forward-looking statements are based on information as of September 20, 2012. 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 brands. Fiscal year 2011 net sales were $14.5 billion. Gap Inc. products are available for purchase in about 90 countries worldwide through about 3,000 company-operated stores, about 250 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.