The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GPS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap and its Old Navy brand are the subject of a Wall Street Journal article published on May 20, 2022, titled, “Old Navy Made Clothing Sizes for Everyone. It Backfired. The clothing brand’s push for inclusivity left it with a shortage of middle sizes. ‘It’s super-frustrating.’” The Journal reported that “Old Navy set out to make clothes shopping more inclusive for women of all body types. It ended up with too many extra-small and extra-large items and too few of the rest, a mismatch that frustrated customers and contributed to falling sales and a management shake-up.” The article added that “Gap warned that sales for the spring quarter would fall short of expectations in part due to troubles at Old Navy,” and that “the extended sizes were the culprit, according to current and former employees.” Finally, the Journal states that “Old Navy’s stumbles don’t bode well for Gap Inc. In 2021, Old Navy accounted for 54% of the company’s sales and roughly 80% of profits.” Based on this news, shares of Gap fell by 5% on May 23, 2022.
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We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at bschall@schallfirm.com.
The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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