Gap Not Yet in Vogue

The few Gap (GPS) bulls will happily point to the May issue of Vogue magazine, where the retailer's new designer line is featured on the cover, as a sign that flailing brand is becoming fashionable again.

But a funky white T-shirt is not going to be enough to fix the company.

Gap recently introduced a line of white shirts designed by three emerging designers -- Doo.Ri, Rodarte and Thakoon -- as an effort to boost its fashion profile. But industry watchers aren't convinced that these designers and the Vogue cover are anything more than a nice distraction from what ails the company in its ongoing sales slump.

Gap's problems lie deeper. Its products stay too long on the shelves, and they just aren't fresh enough. Mark Lilien, a consultant with Retail Technology Group, questions whether Gap has done enough market research.

"Coach (COH) doesn't just have good designers and management," he says. "Before they make a commitment to a certain look, they know it's going to sell."

That brings up a conundrum for Gap. As I outlined in my recap of the company's fourth-quarter earnings, Gap doesn't know who its customers are. It's tough to design and test clothes if you're not sure which demographic group is most likely to walk through your doors.

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