Gap to Cut Namesake U.S. Stores to Focus on Global Expansion

Gap Inc. plans to close stores in the U.S. while expanding its international and online business and said falling cotton prices will boost its profit margin.

Gap will reduce its North American namesake stores to about 700 by the end of 2013, a 21 percent decrease from the count in the first half of this year and a 34 percent drop from the end of 2007, Chief Financial Officer Sabrina Simmons said today at an investor meeting in New York. Cotton prices that have declined since reaching records this year will help increase profitability, the company said.