-By Staff Report

During its annual meeting with investors today, Gap Inc. said it would focus on growing its core brands, as well as its online and international businesses over the next year.

"We remain focused on improving results at our core brands, while pursuing strategic growth opportunities online and internationally," said Glenn Murphy, Gap's chairman and CEO, in a statement.

As part of its growth strategy, the company said it would shift marketing initiatives for the Gap brand to a mix of traditional and nontraditional media. Gap is not planning to run TV ads for the remainder of the fiscal year. It will, however, launch a campaign dubbed "Vote for ____" that targets voters.

"Gap brand's top priorities for 2009 are driving traffic, executing on its real estate strategy and improving productivity," Marka Hansen, president of Gap North America, said in a statement.

Gap also outlined top priorities for its Old Navy and Banana Republic brands. In 2009, the company will focus on improving product assortments, driving traffic and executing on a new store design for Old Navy. It has hired agency Crispin Porter + Bogusky, Miami, to handle creative that appeals to young moms—a key target audience for Old Navy. The company said it has a similar goal to drive traffic for Banana Republic, while continuing to market the brand to an "affluent, thirty-something, city style, professional demographic."

In closing, Gap said it sees a growth opportunity online, particularly e-commerce sites that serve as a marketing venue for its stores. According to the company, its online division grew from $595 million in net sales in 2005 to $903 million in 2007. Net sales are expected to surpass $1 billion this year.
 
Gap forecasts fiscal year 2008 diluted earnings per share to be between $1.30 and $1.35, and it expects to have about $1 billion in free cash flow for the year. Gap will release its third quarter earnings on Nov. 20.