Core Insights - Gap has struggled since the departure of former CEO Millard "Mickey" Drexler in 2002, with attempts to revitalize the brand failing, including a controversial logo change in 2010 that was quickly reversed due to customer backlash [1][4] Company History and Evolution - Under Drexler's leadership, Gap expanded significantly, increasing its store count from approximately 1,100 in 1990 to 2,548 by 2000, and successfully launched Old Navy and Banana Republic to cater to diverse consumer demographics [2][3] - The brand initially targeted young adults with Levi's jeans but shifted focus to khakis and shirts in the 1990s, adapting to changing fashion trends [3][6] Current Challenges - Gap has faced declining foot traffic and sales, leading to the closure of 80% of its namesake stores to concentrate on more successful brands like Old Navy [4][13] - The rise of e-commerce and competition from low-cost retailers such as H&M and Walmart has further complicated Gap's market position [5][8][9] Recent Performance and Strategy - Gap's "Power Plan 2023" aims to pivot away from Gap stores towards Old Navy and Athleta, resulting in a significant reduction of Gap stores from 2,505 in 2000 to 472 currently [13][21] - Old Navy has emerged as a leading apparel retailer, with over 1,300 stores globally and a 6% increase in comparable store sales [15][16] Financial Results - The company reported a 5% increase in overall comparable store sales, the fastest growth in four years, with total revenue rising to $3.9 billion [19] - Despite challenges, Gap remains financially stable, generating 62 cents per share in profit and holding $2.5 billion in cash at the end of the third quarter [21] Future Outlook - Gap plans to enhance its product offerings, including a push for beauty products at Old Navy, while facing challenges with Athleta, which saw an 11% decline in comparable sales [20][21]