LONDON — Gap Inc. International has dampened speculation in the U.K. that it plans to roll out Banana Republic stores in Europe.
The Sunday Telegraph reported that Gap would introduce the Banana Republic brand to Europe by early 2008, and that the company was already in touch with London management consultants to help with the project.
“The story is speculative,” a Gap Inc. spokeswoman said Monday. “While we see opportunity for Banana Republic in Europe in the long term, there is nothing to comment on now.”
Banana Republic has begun to expand outside the U.S. with franchise stores in Japan opening this year. It also plans to open franchises in Asia and the Middle East.
Any short-term retail rollout in Europe would come at a critical time for the $16 billion Gap, which has been struggling with lackluster results. In the nine-month period to Oct. 28, earnings were down 27.9 percent, to $559 million, from $775 million in the corresponding period last year. Sales were down slightly, to $11.01 billion from $11.2 billion. While the Gap and Old Navy divisions have shown comp-store declines this year, Banana has reported single-digit gains.