Jim Cramer: Gap Is Not a Company to Write Off

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Gap  (GPS) - Get Report said that it believes that it will return to profitable growth next year as it looks to bounce back from the coronavirus pandemic shutdown.

The comments came during the Gap's virtual investor meeting, Bloomberg reported.

Gap said sales would expand by low- to mid-single digits annually as it tried to reach a profit margin of at least 10% by 2023.

The company also expects to close 350 Gap and Banana Republic stores in North America by year-end 2023. The bulk of the closures will be done by year-end 2021.

The company, which had 129 Gap-brand stores in Europe at the end of July, said late on Tuesday that options being explored include closing outlets in the UK, France, Ireland, and Italy by mid-2021, Reuters reported.

In addition, Gap is also exploring strategic alternatives in Europe that could see it partially shift from company-owned to partner model.

The company said that it saw sales at its Athleta activewear line reaching $2 billion annually by 2023. Net sales were up 6% last quarter, Bloomberg noted, while sales at Gap, Old Navy, and Banana Republic fell.

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