Nomura cautious on GAP's holiday performance Nomura came away from a GAP management meeting increasingly cautious regarding holiday sales due to Kohl's overload of inventory and the potential for increased promotional activity.
Credit Suisse remains cautious on The Gap Credit Suisse believes The Gap's (GPS) core brand continues to struggle and is losing relevance with consumers. The firm's analyst said Gap brand's value proposition is being eroded by the rise of low-cost "deep value" retailers with efficient supply chains and lower markdown risk. Credit Suisse said Gap's supply chain is reliant on long-lead times and design teams removed from production, which should lead to comp and earnings pressure. Credit Suisse rates The Gap an Underperform with a $34 price target.