Gap's Story Still Has Holes

Nine words spoken on Gap's (GPS Quote) conference call Thursday evening confirmed to me the company is nowhere near a turnaround. Despite management saying the right things in many instances -- more risk-taking in the creative area, reigning in expenses, etc. -- nine words fully explained the problem at the company.

The issue? The company doesn't know who its customers are.

Marka Hansen, the new head of Gap North America, was full of confidence and passion as she outlined the goals she fully expects the company's namesake brand to achieve. Early in the call, Hansen described the problems Gap ran into regarding its marketing. She discussed how the various marketing messages were confusing because they appealed to various target demographics. ...