Gaps and Gowns

If analysts'predictions are correct, The Gap (San Francisco) will continue to have problems right through the spring. Emme Kozloff, retail analyst at Sanford C. Bernstein, weighed in this week with her belief that Gap's problems are due partly to “uninspiring spring clothing lines at all of the company's units.”

“Difficult times will continue for the foreseeable future,” Kozloff wrote in a research note released Tuesday, “with poor comparative performance partially offset by an aggressive expansion throughout fiscal year 2001.”

The analyst called both new merchandise and advertising from Gap “competent, but not compelling. Clothes do not have enough focus on fashion at Gap, Banana Republic or Old Navy,” she said.

“We believe Gap will continue to face negative earnings exposure to competitors including American Eagle Outfitters Inc. , Express and Abercrombie & Fitch , who are attacking the consumer with stronger lifestyle themes associated with their merchandise.”

Kozloff said she sees flat same-store sales for Gap in March and expects April sales to be off 6 percent from a year ago. The troubled retailer announced earlier this week that it would be closing eight stores in the very important Manhattan market.