uploads///Gap Inc versus XLY ETF versus SPY ETF

Gap Falls 37.6% in 2015

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Gap’s big fall in 2015

Gap (GPS) has provided the lowest return to its investors in 2015 in comparison to its closest peers like Ross Stores (ROST), L Brands (LB) and Urban Outfitters (URBN). This drop has mainly been due to declining growth in organic sales of the company. Gap (GPS) has fallen 37.6% YTD (year-to-date), as of December 29, 2015, while its peers Ross Stores (ROST) and L Brands (LB) have risen 17.7% and 18.2%, respectively.

As can be seen from the chart above, Gap (GPS) has underperformed both the consumer discretionary sector, which is represented by the Consumer Discretionary Select Sector SPDR Fund (XLY), and the US broad equity market, which is represented by the SPDR S&P 500 ETF (SPY).

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About the company

Gap (GPS) encompasses brands like Banana Republic, Old Navy, Piperlime, Athleta, and INTERMIX. In addition to its company-operated stores around the globe, Gap has a presence in the online retail and franchise retail markets.

Those who are interested in diversified exposure to Gap (GPS) can invest in the SPDR S&P Retail ETF (XRT), an equal-weighted ETF with exposure to around 100 US retail sector stocks like Amazon.com (AMZN) and Walmart (WMT).

In the next article in this series, we’ll take a more detailed look at Gap’s fundamentals.

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