The Gap Inc. (GPS) Is Playing its Cards Right

The other name which has hit rough waters thanks to Gap is Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) . As Gap, along with Diane Von Furstenberg, gears up to launch a second GapKids and Baby Gap collection this spring, Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) would face the heat.

The competition has been fuming since long, and it peaked this year with Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) Retail posting weak 2012 revenue of $1.8 billion. Although its annual sales advanced 11%, its same-store sale growth of 4.3% was not that impressive against Gap’s 5%.

The Gap Inc. (NYSE:GPS) is on a dream run with its fourth-quarter sales improving 5% and pleasing Wall Street with a robust $ 4.28 billion figure. Also, the company never fails to give a fair share of its success back to the shareholders, and this commitment holds true even for 2013 as it announced an increase of 20% in dividend.

I believe Gap will continue its strong run and live up to the expectations of its customers and investors going forward.

The article This Specialty Retailer Is Playing its Cards Right originally appeared on Fool.com is written by Eshna De.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.