Gap Spinoff Notes

April 23, 2022 Update

Rumors Abound That Activists Will Force Gap to Spin-off Athleta

– The transaction would be compelling. Athleta had $1.4BN in sales in 2021 (+46% from pre-covid). LULU trades at 7.7x revenue. If Athleta traded at 4.2x revenue, it would account for 100% of Gap (GPS)’s current market cap.