While the news that Gap (NYSE: GPS ) is planning on taking its Old Navy brand to China wasn’t surprising, investors might not have foreseen the strength the company has in its convictions. On a call with investors yesterday, Gap’s management said, “We see [the opportunity for global growth] particularly in some countries where in our category, you’re talking about double-digit growth just to keep up with the market.” That means China, Indonesia, Vietnam, and Cambodia, just to name a few.
The start of the push will come from franchise Old Navy locations in China, but with Gap’s impressive array of brands, it’s not going to be long before others come along.
The new opportunity
Gap is looking at Old Navy to be the first big push into new Asian markets. At first, stores will be franchise locations, with up to 85 open before the end of the year, with 10 of those being outlets. One of the biggest strengths that the company boasts is its impressive underlying operations. On yesterday’s call, the company bragged that the structure now in place was buried in the P&L from 2008 to 2012, and now the cost to enter new locations is minimal.
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Sunstone Hotel Investors, Inc. operates as a real estate investment trust. The firm engages in the acquisition, ownership, asset management, renovation, and sale of luxury, upper upscale, and upscale full-service hotels in the United States. Its portfolio also includes mid-scale hotels. Sunstone Hotel Investors was founded in 1995 and is based in Aliso Viejo, California.
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