Gap Tries to Bridge Its Sales Gap; Under Armour CEO Lofty Leadership Plans; Fitbit Not So Bitty Ticker Plans

Big Gap-ing hole…

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Gap Inc. finally realized that its brand just isn’t what it used to be and has decided to shutter about 175 of its 675 specialty stores. What once might have been considered the Generation X go to wardrobe supplier, has now become passé to the millennials, many of whom, ironically, are employed by the Gap. Millennials have been opting to shop at “fast” brands like Zara, H&M and Forever 21, leaving the Gap holding the empty shopping bag of fiscal anguish. And not to be a downer, but when I browsed through a Gap last week, I wasn’t exactly swooning over the merchandise which the store was practically giving away. Shoppers are doing a lot more of their shopping online so there was no great pay-off in having so many stores open anyways. About 250 employees over at Gap headquarters in San Francisco are also set to lose their jobs and all these cuts are expected to cost between $140 – $160 million.

So classy…

Image courtesy of cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net

Under Armour CEO Kevin Plank has big plans to lead the company he founded for many many years. Good thing he figured out way to do just that – by offering up more shares to investors. Of course, these aren’t your regular average shares. These shares do carry all the rights and privileges that come with owning a company stock – but with one itty bitty difference: the shares carry no voting power.  The company already has class A shares and class B shares. With class A shares, a shareholder gets one vote per share, while class B shares get ten votes per share owned. In case you haven’t figured it out, Kevin Plank holds most of those shares giving him lots of control. But, the board of directors had no problem with Kevin Plank’s class-y plan, unanimously passing it through. And why should the board take issue with it? Under Plank’s guidance, he led the company to a $17 billion valuation. The problem, however, that everybody seems to be wondering about, is what happens if Kevin Plank begins to under-perform?

Speaking of class-y shares…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Fitbit is getting pumped up to make its big ticker debut on Thursday and gearing up to offer 34.5 million class A shares which are set to go for between $17 – $19 a pop. That’s a bit higher than the $14 – $16 range it was going for a few weeks back.  That means the company, famous for its wearable fitness tracker,  could end up with a potential valuation of almost $4 billion.  And while you may bemoan the thought of exercise, there are a lot you out there who are eager to get fit, as evidenced by the $745 million in revenue Fitbit pulled down last year, earning a $100 million profit with that. Of course there’s still a lot of competition out there when it comes to wearable fitness trackers which has investors pondering just how Fitbit is going to set itself apart from the pack. Then there’s that other slight problem where users decide to ditch their trackers after just a few months. But hey, it’s only money, right?

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One response to “Gap Tries to Bridge Its Sales Gap; Under Armour CEO Lofty Leadership Plans; Fitbit Not So Bitty Ticker Plans

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