Gap to Buy Luxury Retailer Intermix

Gap Inc. is buying women's fashion boutique Intermix Inc. for $130 million, a deal that will give the mostly casual-clothes retailer an opening to the all-important luxury market. The acquisition is the first in half a decade for Gap, which is coming off a string of rare fashion successes that boosted its sales and stock price last year. Intermix doesn't produce its own clothes and only has around 30 stores in the U.S. and Canada. But the chain has relationships with designers, including Herve Leger, Yves Saint Laurent and Rag & Bone, from which Gap could benefit.