GAP INC is another retailer in the bear market

Sales productivity today (blended) is in excess of $400/foot. In past recessions it's dropped down closer to $360/foot. And on a go-forward basis, with increasing competition from Uniqlo, H&M, and not to mention little ol' Primark, we think that GPS             is just structurally unable to compete -- especially at a 12%+ margin structure when we're late in the economic cycle .

We're fully aware that the stock looks "cheap" (whatever that means) at 10x earnings . But take sales productivity down by 15%-20% and the fixed cost deleverage takes earnings per share negative. Not so "cheap" on those numbers.

Short Green into an overbought close,
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