1、2006 Annual ReportGap is an iconic apparel brand recognized throughout the worldfor its casual American classicsgreat knits,khakis,t-shirts andof course,denim.Through GapKids,babyGap,Gap maternity,and GapBody we build on the power of the brand by dressingour customers throughout the different stages
2、 of their lives.With its modern interpretations of classic fashion for men and womenthrough elevated design and luxurious fabrics,Banana Republichas come to define accessible luxury suitable for the workplace tosocial gatherings.Based on positive customer response,we continueexpanding the brand into
3、 product categories such as handbags,fragrance and an upcoming line of eyewear and sunglasses in 2007.Old Navy offers modern apparel and accessories for adults andchildren,at a surprising value,all in a fun energizing shoppingenvironment.Customers count on Old Navy to deliver what theywantand need.F
4、rom Old Navys Item of the Weeka specialitem at a special price each weekto its eye popping deals andpromotions,Old Navy strives to be the place to go for the newestfashion at amazing prices.GapInc.DGap Inc.DirectGap Inc.s e-commerce divisiongives customersa convenient way to shop our brands online.W
5、ith Gap Online,Old Navy Online and Banana Republic Online,Gap Inc.Direct isone of the largest specialty e-commerce apparel retailers in the U.S.In 2006,our online sales increased 23 percent.We also launchedPiperlime,a fresh online shoe shop featuring a growing numberof popular brands.Whether shoppin
6、g , or ,customers can count onGap Inc.to deliver an easy,enjoyable online shopping experience.8Letter to ShareholdersTo Our Shareholders,Fiscal 2006 was a difficult year.Certainly there were positive develop-mentsincluding continued progress at Banana Republic,the launchof Piperlime and the opening