American Eagle Outfitters (AEO), Aeropostale Inc (ARO): The Gap Inc. (GPS) Pulls Away From the Competition

What comes next for Gap
The weakness that dragged the other companies into the mud skipped over Gap. Because it did have success in the second quarter, Gap is now looking toward the future with hopeful eyes instead of the dread that seems to be hanging over the competition. The company has launched a denim and chambray — chambray is a lightweight fabric, often blue, used mainly in shirts — campaign and is going to launch its first television marketing campaign in years this fall.

While Gap is having difficulty with the Banana Republic brand, everything else is ticking over nicely. With the push back to advertising and the company’s continued focus on its core products, it should be well set for a solid end of 2013. You should be looking for good news from Gap’s August sales, which will be released next week on Thursday. August is a big back-to-school month, and a good increase from Gap would be great news, and not unexpected. Right now, Gap seems to be the only company that really understands the teen market.

The article Gap Pulls Away From the Competition originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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