Why You Should Avoid the Old Navy Spinoff
Gap Stores' (NYSE: GPS) spinoff of discount chain Old Navy was once seen as a surefire way to realize value for shareholders of the ailing jeans and khakis retailer. But Old Navy has started to show signs of wear and tear in 2019. Now, it hardly looks better than the rest of Gap's businesses.
The fast-fashion strategy that had raised Old Navy above Gap's name-brand stores and Banana Republic seems to have run out of steam. Fast-fashion giant Forever 21 recently declared bankruptcy, while H&M has struggled to remain relevant.
Image source: Gap.
Source Fool.com
