Reuters: Global Markets: Gap moves into luxury market with Intermix buy

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Gap moves into luxury market with Intermix buy Jan 3rd 2013, 14:39 Tweet Share this Email Print Related News Esprit shares hit one-month low after profit warning sparks downgrades Wed, Dec 19 2012 H&M like-for-like sales drop 1 percent in November Mon, Dec 17 2012 RPT-UPDATE 2-Zara owner Inditex marches on in China Wed, Dec 12 2012 Once unique, Lululemon faces rivals on all sides Fri, Dec 7 2012 Fashion retailer H&M offers to take your old clothes Thu, Dec 6 2012 Analysis & Opinion Essential reading: Cliff bill means some pay more taxes, and more Essential reading: Tax impact for small business hard to gauge, and more Related Topics Investing and Taxes Simplified » Deals » Global Deals Review: 2011 Q3 » Global Deals Review: 2011 Q2 » Global Deals Review » Hot Stocks » Asian Markets » Inflows Outflows » The Gap flagship store is seen in San Francisco, California August 18, 2011. Credit: Reuters/Robert Galbraith Thu Jan 3, 2013 9:39am EST (Reuters) - Gap Inc (GPS.N), which owns clothing retailers Banana Republic and Old Navy as well as its namesake brand, expanded into the thriving luxury market with its purchase of women's apparel retailer Intermix Holdco Inc for $130 million. Gap, which reported a better-than-expected 5 percent rise in same-store sales for December, also approved a $1 billion share repurchase program after an earlier $1 billion program ended in the fourth quarter. Analysts had expected Gap to report a 3.5 percent rise in same-store sales, according to Thomson Reuters data. Gap shares were up 5 percent at $33 in premarket trading. Privately held Intermix sells clothes and accessories from renowned design houses such as Yigal Azrouel, Yves Saint Laurent, Brian Atwood and Jimmy Choo. It has 32 boutique stores in North America and also operates a retail website. Gap has been attempting to turn around its business after losing ground to rivals including Inditex SA's (ITX.MC) Zara chain, which has a reputation for trendier clothes. The company has also undertaken a major change in its management lineup, which helped to turn around sales. News of the acquisition was first reported by the Wall Street Journal. The deal marks the latest by Gap following its 2008 purchase of women's active apparel retailer Athleta. Gap said Intermix would continue to operate under the leadership of its co-founder Khajak Keledjian in the role of chief creative officer. Gap shares closed at $31.37 on the New York Stock Exchange on Wednesday. (Reporting by Avik Das and Maria Ajit Thomas in Bangalore; Editing by Maju Samuel) Investing and Taxes Simplified Global Deals Review: 2011 Q3 Global Deals Review: 2011 Q2 Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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