Falling into The Gap

A leading specialty retailer takes a dive on Wall Street

The plunge made Wall Street veterans grab for their rip cords. "I've never seen a stock fall that far, that fast," said Barry Bryant, a retail analyst at Drexel Burnham Lambert. "This is a decline that leaves you gasping." Only a month ago Gap Inc., owner of the Gap, GapKids and the Banana Republic clothing chains, had been one of the stock market's highest flyers. But from an August peak of 77 7/8, the stock sank to 37 early last week, down 52%. That included a 10 1/4-point drop last Monday alone.

Even for the wild market of 1987, it was...

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