Retail analysts at investment bank Lazard Freres started the applause. Uh, mmm, nope. And this link reverses things, comparing Abercrombie's position, after its recent earnings announcement, back against Da Gap. In sorting through the numbers, you'll spy a trend forming. Again, Gap's income statement looks terrific.
Margins are up across the board.
Sales are exploding for a company of this size, and earnings are more than keeping pace. Yet the company's total Rule Maker score has fallen from 43 points to 36 points today. The problems for Gap peek out from their balance sheet. These reflect the heavy marketing costs and net-share repurchasings that were part of Gap's adventure. The company has been on a flat-out marketing sprint, trying to cut down the competition for national mindshare.