September 3, 2013
SAN FRANCISCO – September 3, 2013 – Gap Inc. (NYSE: GPS) announced today it will open its first franchise-operated Old Navy stores in the Philippines in 2014. Earlier this year, the company announced its plans to begin franchising Old Navy stores internationally.
Franchising Old Navy stores is a key step in the company’s international expansion as it works to grow its share of the global retail apparel market.
Gap Inc. will partner with Stores Specialists, Inc., which operates Gap brand and Banana Republic stores in-market, to open two Old Navy locations in the beginning of 2014 with plans to open additional stores by the end of the same fiscal year.
“With a steadily growing retail market, the Philippines represents a great opportunity for Old Navy and an important step in the brand’s international expansion,” said Sonia Syngal, Senior Vice President of Old Navy International. “Consumers have a great interest in the iconic American brand Old Navy, and we look forward to making current American fashion essentials accessible for every family.”
Old Navy stores will feature the same energizing store environment that the brand has become known for in the United States and will offer men’s, women’s, kid’s and baby apparel and accessories.
“We’re thrilled to be the first franchisee for Old Navy and help introduce one of the largest apparel brands to consumers in the Philippines,” said Anthony Huang, Executive Vice President, Stores Specialists, Inc. “As the country’s retail market continues to grow, we look forward to sharing our local expertise with Gap Inc. to help the company grow its presence.”
Old Navy currently operates over 1,000 stores in the U.S., Canada and Japan and recently announced plans to open stores in China in the first half of 2014.
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 franchise store openings and timing;
- Global expansion strategies;
- Gaining market share; and
- Old Navy stores in China.
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 to the company’s business associated with global sourcing and manufacturing, including sourcing costs, events causing disruption in product shipment, or an inability to secure sufficient manufacturing capacity;
- 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 trade matters could increase the cost or reduce the supply of apparel available to the company and adversely affect our business, financial condition, and results of operations;
- 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 February 2, 2013, as well as the company’s subsequent filings with the Securities and Exchange Commission.
These forward-looking statements are based on information as of September 3, 2013. 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 Old Navy
Old Navy is a global apparel and accessories brand that makes current American essentials accessible to every family. Originated in 1994, the brand has now grown to one of the largest apparel retailers in North America. A division of San Francisco-based Gap Inc. (NYSE: GPS), Old Navy brings a fun, energizing shopping environment to its customers in more than 1,000 stores in the U.S., Canada and Japan. For more information, please visit www.oldnavy.com.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2012 net sales were $15.7 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,100 company-operated stores, over 300 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.
About Stores Specialists, Inc.
Stores Specialists, Inc. (SSI) is a wholly Filipino-owned corporation established in 1987 with the mission of pioneering into freestanding specialty store concepts. It broke ground in specialty retailing by expanding its distribution through freestanding stores in prime shopping malls in Metro Manila. Through the last two decades, SSI grew its retailing operations by acquiring the exclusive marketing and franchise rights to some of the finest and most prestigious international brands in the world. It is now the leading specialty store retailer in the Philippines, trading over 600 stores to date.