Analyst Sees Long Road Ahead for Gap Turnaround NEW YORK — Looks like Gap Inc.’s turnaround may have to wait.
Mark Montagna, vice president of specialty retail at C.L. King & Associates, initiated coverage on Gap Inc. with an “underperform” rating and a 12-month target price of $15, and said in his report that “Gap is trying to condition investors to expect a second-half  miss.”
“Our rating is based on seeing an investment in Gap as dead money and our belief that the company is in the midst of a multiyear downhill slide,” Montagna said. The retailer could not be reached for comment. Shares of Gap closed Tuesday down 0.7 percent at $18.02.
The analyst said Gap’s brands are facing “commoditization” in the market, and that its store base has grown just 2 percent since 2001 in comparison to a 40 percent increase in stores from Gap’s closest competitors. Also topping Montagna’s list of negatives plaguing the retailer is “an abundance of management changes” and “increased speculation of [chief executive officer Paul] Pressler’s departure.”
The analyst is projecting fiscal year 2006 and 2007 earnings per share at Gap to be $1.17. But he expects net income to decline “by $20 million to $973 million.”
NorthPark Center Revamped and Open For Business DALLAS — NorthPark Center here is ready to raise the curtain on a $225 million expansion that is intended to make it the dominant mall in the highly competitive North Texas market.
The revamped space, featuring gargantuan works of art by Claes Oldenbuerg and Mark di Suvero, Barneys New York, stores, restaurants and a 15-screen AMC movie theater, opens on Friday.
Along with the 88,000-square-foot Barneys flagship, Martin + Osa, a new division of American Eagle Outfitters targeting shoppers ages 25 to 40, plans one of its first five units here in August. Sephora, a longtime tenant, is building a bigger store connected to a Klinger Advanced Aesthetics spa in the first example of the companies’ new partnership. And Nordstrom, which opened in November in the first phase of the mall’s two-year expansion, is a prototype with a new layout and fixtures.A two-level corridor targets youth in an attempt to redress a weakness. Running between Foley’s and Nordstrom, it has dozens of stores to dress and amuse babies through teens, including Hanna Andersson, Janie and Jack, Build-A-Bear Workshop, Jacadi, Gymboree, PacSun, Hollister, Skechers, Swatch, Urban Outfitters, XXI, Aéropostale, and American Eagle Outfitters, among others. Yet to open are Play Planet Funk, BabyStyle, Puzzle Zoo, Oakley and GameStop.
Nancy A. Nasher, co-owner of the mall with her husband, David J. Haemisegger, said the goal was to lure “the best of the best” in retail, plus emerging concepts. CrewCuts, J. Crew’s new children’s line, will introduce its first freestanding store on Tuesday.
“We will have the best tenant mix and merchandise mix, and that will set us apart,” Haemisegger said.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews