Gap Dubs New Chain Forth & Towne

Gap Inc. said Thursday that its new store concept catering to the over-35-year-old female -- announced in September -- would be called Forth & Towne.

The new chain is Gap’s first in a decade and will be launched this fall with four stores in the Chicago area and one in New York, executives said at the annual investors meeting in San Francisco.

Forth & Towne aims to appeal to boomer women, who grew up with Gap but with whom the store “lost touch,” said Paul Pressler, president and chief executive.

With the over-35 group accounting for 39% of women’s total apparel expenditures, this market represents a “sizable opportunity” for Gap, whose sales have been wavering, although profit has improved, boosted in part by cost cutting.

Pressler told investors that the San Francisco-based company -- which operates stores under its namesake brand, Old Navy and Banana Republic -- would unveil more details about the clothing this summer. But he said the new store would offer a broad range of sizes, with a focus on fit, and assortments that serve a variety of occasions. The clothing will be priced between those of Gap and Banana Republic, he said.

The test stores will be 8,000 square feet to 10,000 square feet. Pressler noted that the company created an address with the name “Forth” and wanted to evoke a sense of place with the word “Towne.” Fitting rooms will be at the center of the store, with “neighborhoods” of merchandise around them, he said.

Gap also backed its 2005 profit outlook and issued guidance for 2006 as the apparel retailer outlined its growth plans. The company said it expected to grow earnings per share in 2006 by 12%, and reiterated 2005 profit guidance of $1.41 to $1.45 a share. Analysts surveyed by Thomson First Call project the retailer to report earnings of $1.42 a share for 2005 and $1.60 a share next year.

Gap reaffirmed its plans to double its annual dividend this year to 18 cents.

The retailer also said it planned to add at least 50 stores in Britain, France and Japan through 2007 and begin exploring the Chinese market in 2006.

Gap’s shares rose 63 cents to $21.40 on the New York Stock Exchange.