Boston, MA 11/24/2014 (wallstreetpr) – Gap Inc. (NYSE:GPS) has reached an agreement that will allow it to sell its clothes on Zalando’s online fashion platform, considered the biggest in Europe. Gap is to open an online shop on Zalando as part of the agreed partnership where it will sell clothes for men, women and babies starting in the summer of 2015.
Expansion in Europe
The partnership marks a milestone for Gap, which has been trying to penetrate the fashion marketplace of Europe with an assortment of products. Gap Inc. (NYSE:GPS)’s collection is to be styled alongside other brands currently being housed by Zalando. The partnership will also seek to provide customers with an assortment of products that combines American and European casual style.
Zalando is one of the most followed online fashion platform in Europe with more than 100 million visits a month. Gap Inc. (NYSE:GPS) plans to use this opportunity to expand its wings in Europe where it expects to grow its market share. Having launched in the U.K. in 1987, Gap has been successful in growing its presence in the region currently operating 190 stores in over 33- franchise locations and also ships to over 24 countries.
Gap is the biggest U.S apparel retailer but wants to increase its market share in Europe having been successful back at home. The retailer has reiterated that it remains focused on offering relevant brands to over 14 million active customers around the globe.
The announcement of Zalando partnership comes on the heels of Gap Inc. (NYSE:GPS) posting third quarter earnings that failed to excite Wall Street. The company generated revenues of $3.976 billion for the quarter against analyst estimates if $4.04 billion and a slight drop from last year same quarter revenues of $3.976 billion. Net income for the quarter came in at $351 million or $0.80 a share.
Price and volume action was seen in The Gap Inc. (NYSE:GPS) in today’s trading session, most of the action was tilted towards positive side. The Gap Inc. (NYSE:GPS) is currently trading above its 20-Day EMA of $38.84 and RSI of 54.40.
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