Citi Examines GPS, LTD March 2011 Sales

In its review of March 2011 sales, Citi is commenting on Gap Inc. GPS, which it believes is the big story of the day. “The company announced a surprise move to lever up to buy back shares; we also learned that Japan is a much more robust market for GPS than we had thought,” Citi writes. “While the company's comp trends slumped, March was a pretty strong month for our reporters, led by solid execution from Limited Brands, Inc. LTD. Our Softline index declined (0.8%) for March versus a +2.9% gain in February and +12.5% growth in March 2010. That was better than our (4.4%) forecast.” Gap closed Thursday at $22.72; Limited Brands closed at $35.80.