Sales at the retailer's stores have declined for a staggering 10 consecutive quarters, but shares have spiked on stronger cost-management. Gap Inc.'s fashions are hardly topping consumers' shopping lists this holiday season. But that shouldn't stop investors from taking a closer look at the company's stock, which has been soaring, even as shares of other major retailers hit the skids. Murphy has told analysts that he expects the new design leadership at the helm of the Gap and Old Navy chains to start delivering results as early as this spring. Gap's belt tightening looks set to keep the company in fashion.
Gap is one of the few retailers realizing better merchandise margins by managing inventory to current sales growth rate.
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