GPS Stock: Why It Increased Today

By Amit Chowdhry ● Sep 29, 2021
  • The stock price of Gap Inc (NYSE: GPS) increased by over 3% during intraday trading today. This is why it happened.

The stock price of Gap Inc (NYSE: GPS) increased by over 3% during intraday trading today. Investors appear to be responding positively to Hermione People & Brands (the retail arm of FIB Group) buying Gap’s operations in France while operating stores under a franchise agreement. Plus Gap also received regulatory approval for the franchise agreement with HPB in France yesterday. 

This deal involves transferring all 21 Gap-branded stores and 347 Gap France employees to HPB next month. The terms of the deal were undisclosed.

About a year ago, Gap said it was strategically reviewing its company-operating businesses in Europe. The company was expecting to close its store network in the area, but they were also interested in setting up partnerships to maintain its presence there.

KEY QUOTES:

“The transaction shared today is the result of the review of Gap France. It will allow Gap to operate its business through a more efficient partner model and to benefit from the expertise of Hermione People & Brands, which owns a portfolio of leading retail brands Camaïeu, La Grand-Récré and 22 Galeries Lafayette affiliated stores.”

— Joint statement from the companies via WWD

“Together, we will co-write a new page in the history of Gap in France and help the company meet the retail challenges of today and tomorrow.” 

— Wilhelm Hubner, associate chairman of HPB

“Gap has served customers in France for nearly 30 years, and we are looking forward to working with Hermione People & Brands as our franchise partner in France because they offer innovative retail experiences. The decision to transfer our Gap business to a strong operator is an example of how we are partnering to amplify and grow our brand in international markets.”

— Mark Breitbard, president and chief executive officer of Gap Global

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.