This Retailer Sees Billions of Dollars in China

Gap Inc. (NYSE:GPS) expects China (NYSE:FXI) to become a billion-dollar business in three to four years as the largest U.S. apparel chain operator speeds up expansion there from eight existing stores to fifteen by the end of its fiscal year on January 31, and by a year following expects to have as many as 45 stores in the country.

Consumer confidence unexpectedly nose-dived in October to the lowest level since March 2009 and therefore Gap (NYSE:GPS) is focusing on the global market to reduce dependence on North America. China’s growth will slow to 9.5 percent this year; however that is roughly six times the pace of the U.S. and euro area. While continuing to focus on big Chinese cities such as Beijing and Shanghai, where its existing stores are located, GPS plans to have about a third of its stores in smaller cities where incomes are growing more quickly. Labels such as Calvin Klein, also plan to expand to smaller cities in China and be “well established in all three tiers” over the next five to 10 years.

“The company opened a store last month in Chile, its first in Latin America (NYSE:ILF), and plans more in Panama and Colombia next year. It also wants to open more of its namesake and Banana Republic stores in China, South America and ltaly (NYSE:EWI), Stephen Sunnucks, president of international operations, said in October,” according to Bloomberg.

  • Gap Inc. (NYSE:GPS): The shares recently traded at $19.71, up $0.76, or 4.01%. Its market capitalization is $10.06 billion. They have traded in a 52-week range of $15.08 to $23.73. Volume today was 10,401,658 shares versus a 3-month average volume of 8,665,500 shares. The company’s trailing P/E is 10.75, while trailing earnings are $1.83 per share. The company pays a dividend of $0.45 per share for a dividend yield of 2.40%. About the company: The Gap, Inc., is an international specialty retailer operating retail and outlet stores. The Company sells casual apparel, accessories and personal care products for men, women, and children. The Gap operates stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. Get the most recent company news and stock data here >>
  • SPDR S&P Retail ETF (NYSE:XRT): The shares recently traded at $53.26, up $0.21, or 0.4%. Its market capitalization is $. They have traded in a 52-week range of $ to $3.91%. Volume today was 603.08M shares versus a 3-month average volume of 13 shares. The company’s trailing P/E is Consumer Discretionary, while trailing earnings are $State Street Global Advisors per share. The company pays a dividend of $ per share for a dividend yield of %. About the company: SPDR S&P Retail ETF is an exchange-traded fund incorporated in the USA. The Fund’s objective is to replicate as closely as possible the performance of the S&P Retail Select Industry Index, an equal-weighted index. Get the most recent company news and stock data here >>
  • Merrill Lynch & Co., Inc. Retail (NYSE:RTH): The shares recently traded at $110.86, up $1.19, or 1.09%. Its market capitalization is $. They have traded in a 52-week range of $ to $2.49%. Volume today was 139.71M shares versus a 3-month average volume of 14 shares. The company’s trailing P/E is Consumer Discretionary, while trailing earnings are $Merrill Lynch per share. The company pays a dividend of $ per share for a dividend yield of %. About the company: Retail HOLDRs Trust issues depositary receipts called Retail HOLDRs. The Trust will hold common stock issued by 20 specified companies that sell retail merchandise to consumers through traditional retail stores, the Internet, mail order catalogs and other outlets. The Retail HOLDRs are separate from the underlying securities that are represented by the Retail HOLDRs. Get the most recent company news and stock data here >>
  • iShares FTSE China 25 Index Fun (NYSE:FXI): The shares recently traded at $38.08, up $0.55, or 1.47%. Its market capitalization is $. They have traded in a 52-week range of $ to $27.29%. Volume today was 5.11B shares versus a 3-month average volume of 8 shares. The company’s trailing P/E is China Region, while trailing earnings are $iShares per share. The company pays a dividend of $ per share for a dividend yield of %. About the company: iShares FTSE/Xinhua China 25 Index Fund is an exchange traded fund incorporated in the USA. The Fund seeks investment results that correspond to the price and yield performance of the FTSE/Xinhua China 25 Index. The Fund invests 90% of its assets in the underlying index, which represents the performance of the largest companies in the China equity market. Get the most recent company news and stock data here >>

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