Just when you think Gap is done announcing bad news, the khaki king surprises you. It was bad enough that the San Francisco-based company-parent of both Old Navy and Banana Republic- missed its earnings projections for both the first and second quarters this year and scaled back expectations for the rest of 2000. Then, in the dog days approaching Labor Day, came more bad news: Despite all of management's efforts, same-store sales in August fell 14%. With the stock down 52% year to date, a tough retail outlook, and an uncharacteristically subdued CEO Micky Drexler commenting that "obviously, we feel that Au- gust was a disappointing start to the third quarter," you might be tempted to write the company off as another fashion emergency. But don't- at least not yet.
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