Walmart (WMT) and Gap (GPS) have decided to work together, and they are hitting the ground running. An exclusive line of Gap products is coming to Walmart next month. Gap is a specialty retailer focused on the apparel market. Walmart is a discount retailer selling a diverse range of goods.
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Walmart has turned to Gap to fill a gap in its home goods section. It has secured a deal to become the exclusive retailer of Gap Home, a new line of home items spanning bedding, tabletop, bath, and home décor.
Sale of Gap Home products at Walmart will start online from June 24. Some 400 items will be listed initially, at prices ranging from $15.88 – $64.98. Gap will develop its Walmart-exclusive items in partnership with IMG, Gap’s licensing agency. (See Gap stock analysis on TipRanks)
“Gap is the ideal partner to bring its timeless, signature style into the modern home to help customers design and decorate beautiful living spaces,” said Walmart’s EVP of Home, Anthony Soohoo.
Walmart notes that the exclusive collection is environmentally conscious. For example, it will include goods made from organic cotton and recycled materials.
Walmart serves about 220 million customers each week through its network of stores and commerce platforms. It generated $559 billion in revenue in Fiscal 2021. (See Walmart stock analysis on TipRanks)
After Walmart reported Fiscal 2022 first-quarter results that showed ecommerce sales rose 37% year-over-year, KeyBanc analyst Edward Yruma reiterated a Buy rating with a $180 price target on Walmart stock. The price target implies 26.61% upside potential.
“Long-term efforts to reshape the international portfolio appear to be driving higher growth,” noted Yruma.
Consensus among analysts on Wall Street is a Strong Buy based on 15 Buy and 4 Hold ratings. The average analyst price target of $167.24 implies 17.63% upside potential to the current price.
WMT scores a 3 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock will likely underperform the market.
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