Gap Bounces Back
Gap—which operates Gap, Old Navy and Banana Republic stores—is one Bay Area retailer that prospered during the dot-com phenomenon with its “casualization of the American closet” ethos. The San Francisco-based retailer’s khaki pants and Tshirts, sometimes worn with hooded sweatshirts under sports jackets, was typical work wear for legions of dot-comers.
Gap’s steadfast success in the late ’90s led the company to open 300 new stores in 1998 and add 30,000 employees—swelling its payroll to 111,000.
In 2000, Gap’s success story began to reverse itself. The stock value dropped from close to $50 per share to less than $20 per share. In 2002, the company’s longtime chief executive officer, Millard “Mickey” Drexler resigned.
But now the ubiquitous company is beginning to rebound at a time when other specialty chains are still struggling. The company reported steady sales increases during the first quarter of 2003. The company expects to have a profit of $477.5 million in fiscal 2003—a strong contrast with its net loss of $7.8 million in fiscal 2002. —Claudia Figueroa
