Gap (GAP)
Market Price (8/31/2026): $23.5 | Market Cap: $8.3 BilSector: Consumer Discretionary | Industry: Apparel Retail
Gap (GAP)
Market Price (8/31/2026): $23.5Market Cap: $8.3 BilSector: Consumer DiscretionaryIndustry: Apparel Retail
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 18%, Dividend Yield is 3.0%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 14%, FCF Yield is 11% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% Low stock price volatilityVol 12M is 47% Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, and Sustainable Consumption. Themes include Direct-to-Consumer Brands, Eco-friendly Products, Show more. | Weak multi-year price returns2Y Excs Rtn is -36% | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.5%, Rev Chg QQuarterly Revenue Change % is -2.0% Key risksGAP key risks include [1] a continued failure to maintain brand relevance and adapt to shifting consumer preferences, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 18%, Dividend Yield is 3.0%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 14%, FCF Yield is 11% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% |
| Low stock price volatilityVol 12M is 47% |
| Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, and Sustainable Consumption. Themes include Direct-to-Consumer Brands, Eco-friendly Products, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -36% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.5%, Rev Chg QQuarterly Revenue Change % is -2.0% |
| Key risksGAP key risks include [1] a continued failure to maintain brand relevance and adapt to shifting consumer preferences, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 8/28/2026
Gap (GAP) stock has lost about 5% since 4/30/2026 because of the following key factors:
1. Negative market reaction to Q1 fiscal 2026 earnings despite a reported earnings beat.
Gap (NYSE: GAP) reported its first quarter fiscal 2026 results on May 28, 2026 (Gap's fiscal Q1 2026 ended May 1, 2026). While the company's reported diluted earnings per share (EPS) of $0.90 significantly surpassed analyst expectations of $0.46, this beat was largely driven by a non-recurring $313 million net gain from a legal settlement. Excluding this and a concurrent charitable donation, the adjusted diluted EPS was $0.38. Following this announcement, Gap's stock experienced a notable decline of 12.06%, indicating that investors looked beyond the headline EPS figure to the underlying operational performance and the one-time nature of a significant portion of the earnings.
2. Persistent underperformance and declining comparable sales in key brands, particularly Old Navy and Athleta.
Throughout the period, including insights from the fiscal Q2 2026 results reported on August 27, 2026 (Gap's fiscal Q2 2026 ended August 1, 2026), Gap's core brands Old Navy and Athleta continued to struggle. Old Navy, which constitutes approximately 57% of Gap's overall business, saw its comparable sales decline by 4%. Athleta's comparable sales experienced an even steeper drop of 12%. This ongoing weakness in major segments of the business indicated to investors a lack of consistent operational strength and a reliance on the Gap brand's stronger performance, which posted a 10% comparable sales increase in Q2.
Show more
Gap (GAP) stock has lost about 5% since 4/30/2026 because of the following key factors:
1. Negative market reaction to Q1 fiscal 2026 earnings despite a reported earnings beat.
Gap (NYSE: GAP) reported its first quarter fiscal 2026 results on May 28, 2026 (Gap's fiscal Q1 2026 ended May 1, 2026). While the company's reported diluted earnings per share (EPS) of $0.90 significantly surpassed analyst expectations of $0.46, this beat was largely driven by a non-recurring $313 million net gain from a legal settlement. Excluding this and a concurrent charitable donation, the adjusted diluted EPS was $0.38. Following this announcement, Gap's stock experienced a notable decline of 12.06%, indicating that investors looked beyond the headline EPS figure to the underlying operational performance and the one-time nature of a significant portion of the earnings.
2. Persistent underperformance and declining comparable sales in key brands, particularly Old Navy and Athleta.
Throughout the period, including insights from the fiscal Q2 2026 results reported on August 27, 2026 (Gap's fiscal Q2 2026 ended August 1, 2026), Gap's core brands Old Navy and Athleta continued to struggle. Old Navy, which constitutes approximately 57% of Gap's overall business, saw its comparable sales decline by 4%. Athleta's comparable sales experienced an even steeper drop of 12%. This ongoing weakness in major segments of the business indicated to investors a lack of consistent operational strength and a reliance on the Gap brand's stronger performance, which posted a 10% comparable sales increase in Q2.
Show more
Updated on 8/28/2026
Gap (GAP) stock has lost about 5% since 4/30/2026 because of the following key factors:
1. Negative market reaction to Q1 fiscal 2026 earnings despite a reported earnings beat.
Gap (NYSE: GAP) reported its first quarter fiscal 2026 results on May 28, 2026 (Gap's fiscal Q1 2026 ended May 1, 2026). While the company's reported diluted earnings per share (EPS) of $0.90 significantly surpassed analyst expectations of $0.46, this beat was largely driven by a non-recurring $313 million net gain from a legal settlement. Excluding this and a concurrent charitable donation, the adjusted diluted EPS was $0.38. Following this announcement, Gap's stock experienced a notable decline of 12.06%, indicating that investors looked beyond the headline EPS figure to the underlying operational performance and the one-time nature of a significant portion of the earnings.
2. Persistent underperformance and declining comparable sales in key brands, particularly Old Navy and Athleta.
Throughout the period, including insights from the fiscal Q2 2026 results reported on August 27, 2026 (Gap's fiscal Q2 2026 ended August 1, 2026), Gap's core brands Old Navy and Athleta continued to struggle. Old Navy, which constitutes approximately 57% of Gap's overall business, saw its comparable sales decline by 4%. Athleta's comparable sales experienced an even steeper drop of 12%. This ongoing weakness in major segments of the business indicated to investors a lack of consistent operational strength and a reliance on the Gap brand's stronger performance, which posted a 10% comparable sales increase in Q2.
3. Analyst downgrades and reductions in price targets reflected a more cautious outlook on the company's prospects.
Several financial institutions revised their ratings and price targets for Gap, signaling a deteriorating sentiment among analysts during the specified period. For instance, on August 12, 2026, Jefferies Financial Group downgraded Gap's stock from a "buy" to a "hold" rating and lowered its price target from $29.00 to $23.00. Similarly, on August 11, 2026, Barclays maintained an "equal weight" rating but reduced its price target from $26.00 to $20.00. These adjustments by analysts contributed to negative market pressure, reflecting concerns about the company's future growth trajectory and profitability.
4. Weakness in top-line revenue and a narrowed full-year sales outlook.
Gap's net sales for fiscal Q2 2026 were $3.65 billion, representing a 2% decline year-over-year and missing consensus estimates by 1.9%. Furthermore, the company narrowed its full-year fiscal 2026 net sales growth outlook to a range of 1-1.5% from its previous forecast of 1-2%. This consistent challenge in generating robust sales growth, coupled with a more conservative outlook, likely contributed to investor apprehension and downward pressure on the stock.
Show less
Gap (GAP) stock has lost about 5% since 4/30/2026 because of the following key factors:
1. Negative market reaction to Q1 fiscal 2026 earnings despite a reported earnings beat.
Gap (NYSE: GAP) reported its first quarter fiscal 2026 results on May 28, 2026 (Gap's fiscal Q1 2026 ended May 1, 2026). While the company's reported diluted earnings per share (EPS) of $0.90 significantly surpassed analyst expectations of $0.46, this beat was largely driven by a non-recurring $313 million net gain from a legal settlement. Excluding this and a concurrent charitable donation, the adjusted diluted EPS was $0.38. Following this announcement, Gap's stock experienced a notable decline of 12.06%, indicating that investors looked beyond the headline EPS figure to the underlying operational performance and the one-time nature of a significant portion of the earnings.
2. Persistent underperformance and declining comparable sales in key brands, particularly Old Navy and Athleta.
Throughout the period, including insights from the fiscal Q2 2026 results reported on August 27, 2026 (Gap's fiscal Q2 2026 ended August 1, 2026), Gap's core brands Old Navy and Athleta continued to struggle. Old Navy, which constitutes approximately 57% of Gap's overall business, saw its comparable sales decline by 4%. Athleta's comparable sales experienced an even steeper drop of 12%. This ongoing weakness in major segments of the business indicated to investors a lack of consistent operational strength and a reliance on the Gap brand's stronger performance, which posted a 10% comparable sales increase in Q2.
3. Analyst downgrades and reductions in price targets reflected a more cautious outlook on the company's prospects.
Several financial institutions revised their ratings and price targets for Gap, signaling a deteriorating sentiment among analysts during the specified period. For instance, on August 12, 2026, Jefferies Financial Group downgraded Gap's stock from a "buy" to a "hold" rating and lowered its price target from $29.00 to $23.00. Similarly, on August 11, 2026, Barclays maintained an "equal weight" rating but reduced its price target from $26.00 to $20.00. These adjustments by analysts contributed to negative market pressure, reflecting concerns about the company's future growth trajectory and profitability.
4. Weakness in top-line revenue and a narrowed full-year sales outlook.
Gap's net sales for fiscal Q2 2026 were $3.65 billion, representing a 2% decline year-over-year and missing consensus estimates by 1.9%. Furthermore, the company narrowed its full-year fiscal 2026 net sales growth outlook to a range of 1-1.5% from its previous forecast of 1-2%. This consistent challenge in generating robust sales growth, coupled with a more conservative outlook, likely contributed to investor apprehension and downward pressure on the stock.
Show less
Holding a concentrated position? Know your true downside before the momentum shifts.
Protect Your Wealth →
Stock Movement Drivers
Fundamental Drivers
The -3.6% change in GAP stock from 4/30/2026 to 8/30/2026 was primarily driven by a -40.0% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 8302026 | Change |
|---|---|---|---|
| Stock Price ($) | 24.36 | 23.48 | -3.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,366 | 15,326 | -0.3% |
| Net Income Margin (%) | 5.3% | 8.1% | 53.2% |
| P/E Multiple | 11.1 | 6.7 | -40.0% |
| Shares Outstanding (Mil) | 373 | 355 | 5.1% |
| Cumulative Contribution | -3.6% |
Market Drivers
4/30/2026 to 8/30/2026| Return | Correlation | |
|---|---|---|
| GAP | -3.6% | |
| Market (SPY) | 7.1% | 14.3% |
| Sector (XLY) | -1.0% | 41.1% |
Fundamental Drivers
The -14.7% change in GAP stock from 1/31/2026 to 8/30/2026 was primarily driven by a -44.4% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 8302026 | Change |
|---|---|---|---|
| Stock Price ($) | 27.53 | 23.48 | -14.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,279 | 15,326 | 0.3% |
| Net Income Margin (%) | 5.6% | 8.1% | 46.1% |
| P/E Multiple | 12.0 | 6.7 | -44.4% |
| Shares Outstanding (Mil) | 372 | 355 | 4.8% |
| Cumulative Contribution | -14.7% |
Market Drivers
1/31/2026 to 8/30/2026| Return | Correlation | |
|---|---|---|
| GAP | -14.7% | |
| Market (SPY) | 11.5% | 25.0% |
| Sector (XLY) | -3.1% | 43.6% |
Fundamental Drivers
The 24.4% change in GAP stock from 7/31/2025 to 8/30/2026 was primarily driven by a 40.3% change in the company's Net Income Margin (%).| (LTM values as of) | 7312025 | 8302026 | Change |
|---|---|---|---|
| Stock Price ($) | 18.88 | 23.48 | 24.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,161 | 15,326 | 1.1% |
| Net Income Margin (%) | 5.8% | 8.1% | 40.3% |
| P/E Multiple | 8.1 | 6.7 | -17.0% |
| Shares Outstanding (Mil) | 375 | 355 | 5.6% |
| Cumulative Contribution | 24.4% |
Market Drivers
7/31/2025 to 8/30/2026| Return | Correlation | |
|---|---|---|
| GAP | 24.4% | |
| Market (SPY) | 22.7% | 32.7% |
| Sector (XLY) | 6.5% | 46.2% |
Fundamental Drivers
The 150.6% change in GAP stock from 7/31/2023 to 8/30/2026 was primarily driven by a 143.8% change in the company's P/S Multiple.| (LTM values as of) | 7312023 | 8302026 | Change |
|---|---|---|---|
| Stock Price ($) | 9.37 | 23.48 | 150.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15,415 | 15,326 | -0.6% |
| P/S Multiple | 0.2 | 0.5 | 143.8% |
| Shares Outstanding (Mil) | 367 | 355 | 3.4% |
| Cumulative Contribution | 150.6% |
Market Drivers
7/31/2023 to 8/30/2026| Return | Correlation | |
|---|---|---|
| GAP | 150.6% | |
| Market (SPY) | 74.0% | 38.1% |
| Sector (XLY) | 38.0% | 43.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| GAP Return | -11% | -33% | 97% | 16% | 12% | -17% | 27% |
| Peers Return | 24% | -20% | 75% | 28% | 20% | -1% | 165% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| GAP Win Rate | 67% | 33% | 58% | 33% | 50% | 62% | |
| Peers Win Rate | 53% | 42% | 65% | 55% | 55% | 52% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| GAP Max Drawdown | -56% | -55% | -51% | -33% | -34% | -36% | |
| Peers Max Drawdown | -27% | -51% | -30% | -23% | -32% | -30% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: TJX, ROST, BURL, ANF, AEO. See GAP Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/28/2026 (YTD)
How Low Can It Go
| Event | GAP | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -23.3% | -18.8% |
| % Gain to Breakeven | 30.4% | 23.1% |
| Time to Breakeven | 24 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -45.2% | -6.7% |
| % Gain to Breakeven | 82.3% | 7.1% |
| Time to Breakeven | 161 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -54.4% | -24.5% |
| % Gain to Breakeven | 119.5% | 32.4% |
| Time to Breakeven | 505 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -68.0% | -33.7% |
| % Gain to Breakeven | 212.4% | 50.9% |
| Time to Breakeven | 147 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -33.8% | -12.2% |
| % Gain to Breakeven | 51.0% | 13.9% |
| Time to Breakeven | 657 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -21.1% | -17.9% |
| % Gain to Breakeven | 26.7% | 21.8% |
| Time to Breakeven | 77 days | 123 days |
In The Past
Gap's stock fell -23.3% during the 2025 US Tariff Shock. Such a loss loss requires a 30.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | GAP | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -23.3% | -18.8% |
| % Gain to Breakeven | 30.4% | 23.1% |
| Time to Breakeven | 24 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -45.2% | -6.7% |
| % Gain to Breakeven | 82.3% | 7.1% |
| Time to Breakeven | 161 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -54.4% | -24.5% |
| % Gain to Breakeven | 119.5% | 32.4% |
| Time to Breakeven | 505 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -68.0% | -33.7% |
| % Gain to Breakeven | 212.4% | 50.9% |
| Time to Breakeven | 147 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -33.8% | -12.2% |
| % Gain to Breakeven | 51.0% | 13.9% |
| Time to Breakeven | 657 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -21.1% | -17.9% |
| % Gain to Breakeven | 26.7% | 21.8% |
| Time to Breakeven | 77 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -31.2% | -15.4% |
| % Gain to Breakeven | 45.3% | 18.2% |
| Time to Breakeven | 594 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -54.5% | -53.4% |
| % Gain to Breakeven | 120.0% | 114.4% |
| Time to Breakeven | 287 days | 1085 days |
In The Past
Gap's stock fell -23.3% during the 2025 US Tariff Shock. Such a loss loss requires a 30.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Gap (GAP)
The Gap, Inc. (GAP) is a global apparel retail company that designs, manufactures, and sells a diverse range of clothing, accessories, and personal care products. It operates under several prominent brands, including Old Navy, Gap, Banana Republic, and Athleta. Its core product categories encompass everyday essentials such as denim, tees, fleece, and khakis, alongside fashion accessories like eyewear, jewelry, shoes, and handbags. The Athleta brand specifically focuses on fitness and lifestyle products for activities like yoga and training.
Gap primarily serves men, women, and children globally, with each brand targeting distinct customer preferences and demographics. The company reaches its broad customer base through a comprehensive multi-channel distribution strategy that includes company-operated stores, franchise stores, e-commerce websites, and third-party arrangements. Its extensive international footprint spans regions such as Asia, Europe, Latin America, the Middle East, and Africa, ensuring widespread access to its product offerings.
AI Analysis | Feedback
It's like the American version of Inditex (Zara's parent company) or H&M Group, managing a portfolio of well-known clothing brands.
Imagine a single company that owns a value-focused clothing chain (like Old Navy), a classic American casual brand (like Gap), and a premium activewear brand (like Lululemon for women).
AI Analysis | Feedback
```html
- Apparel: A wide range of clothing for men, women, and children, including denim, tees, fleece, khakis, and specialized fitness and lifestyle wear.
- Accessories: Complementary items such as eyewear, jewelry, shoes, and handbags.
- Personal Care Products: Items like fragrances offered for men, women, and children.
AI Analysis | Feedback
The Gap, Inc. (symbol: GAP) sells primarily to individuals. Its major customer categories are:
- Men
- Women
- Children and Girls
AI Analysis | Feedback
null
AI Analysis | Feedback
Richard Dickson, President and CEO, Gap Inc.
Richard Dickson joined Gap Inc. as President and CEO effective August 22, 2023. Prior to this role, he served as President and Chief Operating Officer of Mattel, where he oversaw innovation strategy, design and development, brand marketing, and franchise management for a portfolio of global brands. He also developed and launched the Mattel Playbook, a brand-building approach, during his time at Mattel. Before Mattel, Dickson was President and CEO of Branded Businesses for The Jones Group.
Katrina O'Connell, Chief Financial Officer
Katrina O'Connell has been with Gap Inc. for over 25 years and has served as Executive Vice President and Chief Financial Officer since March 2020. Her extensive experience within the company includes previous CFO roles at Old Navy and Banana Republic, as well as various other finance and operations positions across the organization.
Haio Barbeito, President and CEO, Old Navy
Horacio "Haio" Barbeito leads Old Navy as its President and CEO. He is described as a multi-disciplined leader with expertise in merchandising, marketing, supply chain, and store operations across various geographies. Before joining Old Navy, Barbeito spent 26 years at Walmart, including a decade in CEO roles for Walmart's international businesses, most recently as CEO for Walmart Canada. He joined Old Navy on August 1, 2022.
Mark Breitbard, President and CEO, Gap Brand
Mark Breitbard has more than 25 years of retail leadership experience, with roles in product, creative, and management at major global brands. He began leading Gap global in 2020, focusing on turning the brand around through new positioning and an updated operating model. Breitbard previously held leadership positions across Gap, contributing to the product-led resurgence of Gap's North America business between 2010 and 2013, and rejoined Gap Inc. in 2017.
Maggie Gauger, President and CEO, Athleta
Maggie Gauger assumed the role of President and CEO of Athleta, effective August 1, 2025. She brings over 25 years of experience in athletic and lifestyle apparel, with deep expertise in brand management, merchandising, product innovation, and digital commerce. Prior to joining Athleta, Gauger served as Vice President and General Manager of Nike's North America Women's Business.
AI Analysis | Feedback
Here are the key risks to Gap Inc. (GAP):
- Intense Competition and Evolving Consumer Preferences: Gap Inc. operates in a highly competitive and dynamic apparel retail market. The company faces significant pressure from fast-fashion retailers, online-only brands, and other established apparel companies, which constantly vie for market share. Rapidly changing fashion trends, increasing consumer demand for sustainable and ethically produced clothing, and the accelerated shift towards online shopping necessitate continuous adaptation. The inability to consistently meet evolving consumer demands and adapt to fast fashion cycles can lead to "fashion misses" and sales declines, as seen with some brands like Athleta. Consumers also face low switching costs, intensifying price-driven purchasing.
- Macroeconomic Headwinds and Tariff Impacts: Gap Inc. is susceptible to broader global economic conditions, including inflationary pressures, geopolitical instability, and fluctuations in consumer spending. A significant and frequently cited risk is the direct financial impact of tariffs, which have reduced gross margins and are expected to continue to do so. Management estimated tariffs would reduce consolidated operating margin by approximately 100-110 basis points in fiscal 2025, and projected a Q1 2026 gross margin shrink of 150-200 basis points due to these impacts.
- Supply Chain Disruptions and Operational Inefficiency: The company faces ongoing challenges in its global supply chain, which can be affected by geopolitical tensions, natural disasters, transportation shortages, factory closures, and inventory mismanagement. These disruptions can impact product availability, delivery, and ultimately, sales. Furthermore, Gap's "design-to-shelf" cycle is slower compared to fast-fashion rivals, undermining its ability to quickly respond to trend shifts and maintain inventory efficiency. Strengthening its supply chain and improving overall operational efficiency are crucial for meeting demand and maintaining competitiveness.
AI Analysis | Feedback
The rapid expansion and market share capture by ultra-fast fashion retailers such as Shein and Temu presents a clear emerging threat. These companies leverage highly agile supply chains, sophisticated data analytics, and direct-to-consumer digital marketing to produce vast quantities of trendy apparel at extremely low price points and rapid refresh cycles. This model directly challenges the market position of traditional apparel retailers like Gap, particularly its mass-market brands such as Old Navy and Gap, by offering consumers a constant influx of new styles at significantly lower costs, thereby disrupting established consumer purchasing patterns and market share dynamics.
AI Analysis | Feedback
Gap Inc. operates in several large addressable markets for its main products and services, including apparel, fashion accessories, and athleisure.
- Global Apparel Market: The global apparel market was valued at approximately $1.84 trillion in 2025.
- U.S. Apparel Market: The U.S. apparel market was valued at $365.70 billion in 2025.
- Global Fashion Accessories Market: The global fashion accessories market size was estimated at USD 1,143.52 billion in 2025.
- U.S. Fashion Accessories Market: The U.S. fashion accessories market was valued at USD 223.2 billion in 2024.
- Global Athleisure Market: The global athleisure market size accounted for USD 472.71 billion in 2025.
- U.S. Athleisure Market: The North America athleisure market size reached USD 126.16 billion in 2025.
AI Analysis | Feedback
```html
```
For the public company Gap (symbol: GAP), the following are expected drivers of future revenue growth over the next 2-3 years:
- Brand Reinvigoration Across Key Brands: Gap Inc. is prioritizing the rejuvenation of its core brands, including Old Navy, Gap, Banana Republic, and Athleta, through targeted strategies to improve their market standing and performance. Old Navy and the Gap brand have demonstrated consistent positive comparable sales and traffic growth, with Old Navy showing four consecutive quarters of positive growth and the Gap brand recording five consecutive quarters of share gains as of Q2 2024. Banana Republic is also being revitalized with store redesigns and a focus on the premium lifestyle sector, and Athleta is undergoing a turnaround with product innovation. These brand-specific strategies, aimed at strengthening relevance and market share, are anticipated to continue driving revenue.
- Digital-First Strategy and E-commerce Expansion: A significant focus for Gap Inc. is its digital-first approach, with a strong emphasis on growing e-commerce sales. The company aims to enhance customer experiences and operational efficiency through technological innovation and digital solutions, including AI integration. Online sales have been a key driver, increasing 5% in Q4 fiscal 2025 and representing 42% of total net sales. Continued investment in its online platforms and digital engagement is expected to contribute to revenue growth.
- Expansion into New Product Categories (Beauty and Accessories): Gap Inc. is strategically expanding into the beauty and accessories markets to diversify its offerings and leverage opportunities in these fast-growing retail categories. A phased launch began with an initial test at Old Navy in Fall 2025, with plans to scale the beauty business in 2026 and introduce brand-right expressions across its portfolio. This expansion into underdeveloped, yet relevant, categories for its consumers is expected to unlock new revenue streams.
- Optimizing Store Footprint and Enhancing Customer Experience: The company is actively managing its physical store presence by strategically closing underperforming locations to improve operational efficiency and reallocating resources to more profitable ventures. Concurrently, Gap Inc. is accelerating customer experience improvements, including store remodels and refining in-store service and aesthetics across its brands, to build momentum and foster stronger customer engagement and loyalty. These efforts, alongside "fashiontainment" initiatives, are designed to drive traffic and increase sales.
AI Analysis | Feedback
<h3>Share Repurchases</h3>
<ul>
<li>In fiscal year 2025, Gap Inc. authorized a new $1 billion share repurchase program, which supersedes prior authorizations.</li>
<li>The company repurchased 7 million shares for $155 million during fiscal year 2025 and distributed a total of $402 million to shareholders through dividends and share repurchases.</li>
<li>For fiscal year 2024, Gap Inc. repurchased 3 million shares for approximately $75 million during the fourth quarter and distributed $300 million to shareholders through dividends and share repurchases.</li>
</ul>
<h3>Share Issuance</h3>
<ul>
<li>Gap Inc.'s shares outstanding were 384 million at the end of fiscal year 2025 (January 31, 2026).</li>
<li>The number of shares outstanding increased by 2.13% in fiscal year 2025 compared to 2024, and by 2.45% in fiscal year 2024 compared to 2023.</li>
</ul>
<h3>Outbound Investments</h3>
<ul>
<li>In October 2021, Gap Inc. acquired CB4, an AI startup focused on using machine learning for retail operations, predictive analytics, and demand sensing.</li>
<li>In August 2021, Gap Inc. acquired Drapr, an e-commerce startup that provides 3D-fit technology and virtual fitting rooms.</li>
<li>Early in 2021, Gap Inc. participated in a funding round for obé fitness, a digital fitness platform that collaborates with its Athleta brand.</li>
</ul>
<h3>Capital Expenditures</h3>
<ul>
<li>Gap Inc. anticipates capital expenditures of approximately $650 million for fiscal year 2026, with a focus on investments in store formats, AI, technology, and supply chain improvements.</li>
<li>Capital expenditures for fiscal year 2025 were $447 million.</li>
<li>Fiscal year 2024 capital expenditures were $420 million, and for fiscal year 2023, they were also $420 million.</li>
</ul>
Peer Outperformance in Apparel Retail
GAP has outperformed 67% of its 24 Apparel Retail peers over 5Y. Among the peers that beat it is VSXY. Apparel Retail ranks 14th of 23 industries in Consumer Discretionary by median 5Y return. The sector’s gains have largely come from elsewhere.
Share of Apparel Retail constituents that GAP has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
63%
of 27 industry peers · 10.0% return
3Y
85%
of 27 industry peers · 122.9% return
5Y
67%
of 24 industry peers · 7.0% return
Apparel Retail peers with revenue growth within 4pp of GAP's that beat it on at least 2 of 3 windows, and by at least 20pp over 5Y. Growth is matched by construction, so the gap is largely a re-rating gap. The multiple column is the context for it.
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| GAP | Gap | 0.5% | 6.7x | 10.0% | 122.9% | 7.0% | — |
| VSXY | Victoria's Secret | 2.7% | 33.7x | 281.6% | 358.0% | 32.5% | +25pp |
Price returns, excluding dividends. P/E shown for context only and not used for matching.
Median price return by industry across the Consumer Discretionary sector, ranked by 5Y. Apparel Retail is GAP's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Education Services | 14 | -9.0% | 102.9% | 72.3% | LINC 297% · CVSA 263% · PRDO 226% |
| Homebuilding | 18 | -3.4% | 19.2% | 44.2% | GRBK 193% · PHM 150% · TOL 141% |
| Hotels, Resorts & Cruise Lines | 22 | 16.7% | 49.5% | 15.0% | RCL 247% · MAR 171% · HLT 161% |
| Automotive Retail | 18 | -15.3% | 1.4% | 13.2% | MUSA 232% · PAG 173% · ORLY 123% |
| Home Improvement Retail | 5 | -17.7% | -4.2% | 9.1% | HD 15% · LOW 12% · HVT 9% |
| Specialty Stores | 7 | -4.7% | 24.8% | 7.3% | FIVE 14% · DKS 12% · SIG 12% |
| Distributors | 4 | -8.0% | -23.8% | -7.2% | ARMK 145% · GPC 30% · LKQ -44% |
| Specialized Consumer Services | 10 | -10.8% | 25.6% | -10.8% | HRB 142% · FTDR 90% · SCI 44% |
| Restaurants | 34 | -7.9% | -10.7% | -13.0% | EAT 332% · CAKE 170% · RAVE 146% |
| Footwear | 9 | 54.3% | 37.4% | -14.4% | WEYS 163% · DECK 26% · SHOO 22% |
| Home Furnishings | 4 | -5.9% | 20.5% | -15.0% | SGI 52% · LZB 4% · MHK -34% |
| Leisure Products | 13 | -9.0% | -16.8% | -29.1% | GOLF 86% · HAS 17% · MCFT -4% |
| Casinos & Gaming | 20 | -9.8% | -26.7% | -30.4% | MCRI 117% · RSI 77% · RRR 53% |
| Apparel Retail ← | 25 | 2.1% | -1.0% | -36.2% | ANF 315% · DXLG 192% · URBN 146% |
| Apparel, Accessories & Luxury Goods | 26 | -1.7% | 22.2% | -37.2% | TPR 254% · RL 237% · ELA 226% |
| Automotive Parts & Equipment | 38 | -11.4% | -7.3% | -37.7% | MOD 1328% · GTX 293% · STRT 101% |
| Leisure Facilities | 12 | -19.2% | -8.3% | -42.1% | OSW 145% · JAKK 86% · ESCA 8% |
| Household Appliances | 18 | 8.7% | 32.7% | -42.4% | KEQU 185% · FLXS 163% · HBB 112% |
| Broadline Retail | 15 | 9.4% | 15.0% | -54.5% | DDS 319% · AMZN 54% · EBAY 50% |
| Computer & Electronics Retail | 3 | -18.0% | -3.7% | -59.6% | BBY -11% · UPBD -60% · GME -67% |
| Automobile Manufacturers | 8 | -64.9% | -68.0% | -69.8% | GM 83% · F 45% · TSLA 42% |
| Other Specialty Retail | 18 | -31.8% | -48.6% | -79.3% | TLF 106% · BBW 92% · WINA 87% |
| Consumer Electronics | 11 | -11.7% | -13.2% | -80.4% | AXIL 2261% · GRMN 81% · TBCH -56% |
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.
Latest Trefis Analyses
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 141.77 |
| Mkt Cap | 12.7 |
| Rev LTM | 13,771 |
| Op Inc LTM | 1,336 |
| FCF LTM | 687 |
| FCF 3Y Avg | 723 |
| CFO LTM | 1,475 |
| CFO 3Y Avg | 1,267 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.4% |
| Rev Chg 3Y Avg | 7.5% |
| Rev Chg Q | 7.6% |
| QoQ Delta Rev Chg LTM | 1.6% |
| Op Inc Chg LTM | 25.7% |
| Op Inc Chg 3Y Avg | 25.6% |
| Op Mgn LTM | 11.6% |
| Op Mgn 3Y Avg | 10.0% |
| QoQ Delta Op Mgn LTM | 0.6% |
| CFO/Rev LTM | 12.1% |
| CFO/Rev 3Y Avg | 10.6% |
| FCF/Rev LTM | 7.1% |
| FCF/Rev 3Y Avg | 7.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 12.7 |
| P/S | 1.3 |
| P/Op Inc | 13.5 |
| P/EBIT | 13.2 |
| P/E | 18.8 |
| P/CFO | 11.1 |
| Total Yield | 6.4% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 6.4% |
| D/E | 0.3 |
| Net D/E | 0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -5.4% |
| 3M Rtn | 3.2% |
| 6M Rtn | -13.0% |
| 12M Rtn | 22.0% |
| 3Y Rtn | 80.8% |
| 1M Excs Rtn | -9.7% |
| 3M Excs Rtn | 1.5% |
| 6M Excs Rtn | -25.1% |
| 12M Excs Rtn | 0.8% |
| 3Y Excs Rtn | 3.1% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2026 | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| Single Segment | 15,366 | 15,086 | 14,889 | 15,616 |
| Total | 15,366 | 15,086 | 14,889 | 15,616 |
| $ Mil | 2026 | 2025 | 2024 | 2023 | 2013 |
|---|---|---|---|---|---|
| Single Segment | 1,115 | 1,112 | 560 | -69 | |
| Direct | 434 | ||||
| Stores | 1,508 | ||||
| Total | 1,115 | 1,112 | 560 | -69 | 1,942 |
| $ Mil | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|
| Stores | 3,407 | 3,315 | 3,264 | 3,124 |
| Unallocated | 3,177 | 3,516 | 3,256 | 4,373 |
| Direct | 886 | 591 | 545 | 488 |
| Total | 7,470 | 7,422 | 7,065 | 7,985 |
Price Behavior
Price Behavior
| Market Price | $23.48 | |
| Market Cap ($ Bil) | 8.8 | |
| First Trading Date | 07/23/1987 | |
| Distance from 52W High | -18.1% | |
| 50 Days | 200 Days | |
| DMA Price | $20.06 | $23.67 |
| DMA Trend | indeterminate | down |
| Distance from DMA | 17.1% | -0.8% |
| 3M | 1YR | |
| Volatility | 44.2% | 46.9% |
| Downside Capture | 0.23 | 112.75 |
| Upside Capture | 53.91 | 99.60 |
| Correlation (SPY) | 11.8% | 33.5% |
GAP Betas & Captures as of 7/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.74 | 0.45 | 0.67 | 0.97 | 1.24 | 1.39 |
| Up Beta | -1.57 | -0.87 | 0.83 | 0.89 | 1.30 | 1.47 |
| Down Beta | 0.73 | 0.76 | 0.56 | 1.20 | 1.24 | 1.05 |
| Up Capture | 213% | 58% | 8% | 44% | 116% | 415% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 15 | 23 | 33 | 67 | 131 | 365 |
| Down Capture | 80% | 83% | 112% | 127% | 119% | 108% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 7 | 19 | 29 | 58 | 120 | 381 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GAP | |
|---|---|---|---|---|
| GAP | 8.6% | 46.8% | 0.32 | - |
| Sector ETF (XLY) | 0.9% | 19.4% | -0.08 | 45.5% |
| Equity (SPY) | 20.1% | 12.8% | 1.16 | 31.4% |
| Gold (GLD) | 30.9% | 29.0% | 0.92 | 0.7% |
| Commodities (DBC) | 39.9% | 20.3% | 1.54 | -18.2% |
| Real Estate (VNQ) | 9.9% | 13.7% | 0.44 | 28.0% |
| Bitcoin (BTCUSD) | -30.1% | 43.7% | -0.70 | 11.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GAP | |
|---|---|---|---|---|
| GAP | 0.2% | 55.7% | 0.21 | - |
| Sector ETF (XLY) | 6.5% | 24.1% | 0.23 | 47.6% |
| Equity (SPY) | 13.1% | 17.2% | 0.59 | 44.5% |
| Gold (GLD) | 19.7% | 18.7% | 0.85 | 1.3% |
| Commodities (DBC) | 11.5% | 19.6% | 0.46 | 9.4% |
| Real Estate (VNQ) | 2.0% | 18.9% | 0.00 | 35.0% |
| Bitcoin (BTCUSD) | 9.6% | 52.7% | 0.37 | 16.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GAP | |
|---|---|---|---|---|
| GAP | 2.5% | 55.4% | 0.27 | - |
| Sector ETF (XLY) | 12.3% | 22.2% | 0.51 | 49.6% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 46.6% |
| Gold (GLD) | 12.2% | 16.3% | 0.61 | -1.6% |
| Commodities (DBC) | 7.3% | 18.0% | 0.33 | 15.8% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.20 | 41.3% |
| Bitcoin (BTCUSD) | 63.4% | 66.1% | 1.03 | 12.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/31/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/27/2026 | 12.9% | ||
| 5/28/2026 | -15.4% | -13.8% | -25.1% |
| 3/5/2026 | -14.4% | -15.0% | -6.8% |
| 11/20/2025 | 8.2% | 19.3% | 14.4% |
| 8/28/2025 | 1.5% | 9.8% | -1.6% |
| 5/29/2025 | -20.2% | -22.8% | -22.0% |
| 3/6/2025 | 18.8% | 6.6% | -1.8% |
| 11/21/2024 | 12.8% | 10.0% | 8.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 16 | 13 | 8 |
| # Negative | 8 | 10 | 15 |
| Median Positive | 7.9% | 16.8% | 16.8% |
| Median Negative | -14.9% | -13.6% | -6.8% |
| Max Positive | 30.6% | 38.0% | 53.4% |
| Max Negative | -24.1% | -32.0% | -26.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/27/2026 | 12.9% | ||
| 5/28/2026 | -15.4% | -13.8% | -25.1% |
| 3/5/2026 | -14.4% | -15.0% | -6.8% |
| 11/20/2025 | 8.2% | 19.3% | 14.4% |
| 8/28/2025 | 1.5% | 9.8% | -1.6% |
| 5/29/2025 | -20.2% | -22.8% | -22.0% |
| 3/6/2025 | 18.8% | 6.6% | -1.8% |
| 11/21/2024 | 12.8% | 10.0% | 8.9% |
| 8/29/2024 | 1.6% | -5.0% | -4.5% |
| 5/30/2024 | 28.6% | 14.4% | 3.3% |
| 3/7/2024 | 8.2% | 19.0% | 21.5% |
| 11/16/2023 | 30.6% | 38.0% | 53.4% |
| 8/24/2023 | 7.2% | 21.5% | 7.6% |
| 5/25/2023 | 12.4% | 17.2% | 20.2% |
| 3/9/2023 | -6.1% | -13.4% | -12.5% |
| 11/17/2022 | 7.6% | 16.8% | -1.6% |
| 8/25/2022 | -1.9% | -7.7% | -16.2% |
| 3/3/2022 | 0.0% | 0.2% | -5.1% |
| 11/23/2021 | -24.1% | -32.0% | -26.5% |
| 8/26/2021 | 0.6% | -2.5% | -6.7% |
| 5/27/2021 | -4.8% | -10.1% | -7.1% |
| 3/4/2021 | 7.6% | 17.6% | 19.2% |
| 11/24/2020 | -19.6% | -22.1% | -24.0% |
| 8/27/2020 | 0.9% | 1.7% | -1.0% |
| SUMMARY STATS | |||
| # Positive | 16 | 13 | 8 |
| # Negative | 8 | 10 | 15 |
| Median Positive | 7.9% | 16.8% | 16.8% |
| Median Negative | -14.9% | -13.6% | -6.8% |
| Max Positive | 30.6% | 38.0% | 53.4% |
| Max Negative | -24.1% | -32.0% | -26.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 08/28/2026 | 10-Q |
| 04/30/2026 | 05/29/2026 | 10-Q |
| 01/31/2026 | 03/17/2026 | 10-K |
| 10/31/2025 | 11/25/2025 | 10-Q |
| 07/31/2025 | 08/29/2025 | 10-Q |
| 04/30/2025 | 05/30/2025 | 10-Q |
| 01/31/2025 | 03/18/2025 | 10-K |
| 10/31/2024 | 11/26/2024 | 10-Q |
| 07/31/2024 | 08/30/2024 | 10-Q |
| 04/30/2024 | 05/31/2024 | 10-Q |
| 01/31/2024 | 03/19/2024 | 10-K |
| 10/31/2023 | 11/21/2023 | 10-Q |
| 07/31/2023 | 08/25/2023 | 10-Q |
| 04/30/2023 | 05/26/2023 | 10-Q |
| 01/31/2023 | 03/14/2023 | 10-K |
| 10/31/2022 | 11/22/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 08/28/2026 | 10-Q |
| 04/30/2026 | 05/29/2026 | 10-Q |
| 01/31/2026 | 03/17/2026 | 10-K |
| 10/31/2025 | 11/25/2025 | 10-Q |
| 07/31/2025 | 08/29/2025 | 10-Q |
| 04/30/2025 | 05/30/2025 | 10-Q |
| 01/31/2025 | 03/18/2025 | 10-K |
| 10/31/2024 | 11/26/2024 | 10-Q |
| 07/31/2024 | 08/30/2024 | 10-Q |
| 04/30/2024 | 05/31/2024 | 10-Q |
| 01/31/2024 | 03/19/2024 | 10-K |
| 10/31/2023 | 11/21/2023 | 10-Q |
| 07/31/2023 | 08/25/2023 | 10-Q |
| 04/30/2023 | 05/26/2023 | 10-Q |
| 01/31/2023 | 03/14/2023 | 10-K |
| 10/31/2022 | 11/22/2022 | 10-Q |
| 07/31/2022 | 08/26/2022 | 10-Q |
| 04/30/2022 | 05/27/2022 | 10-Q |
| 01/31/2022 | 03/15/2022 | 10-K |
| 10/31/2021 | 11/24/2021 | 10-Q |
| 07/31/2021 | 08/27/2021 | 10-Q |
| 04/30/2021 | 05/28/2021 | 10-Q |
| 01/31/2021 | 03/16/2021 | 10-K |
| 10/31/2020 | 11/25/2020 | 10-Q |
| 07/31/2020 | 08/31/2020 | 10-Q |
| 04/30/2020 | 06/09/2020 | 10-Q |
| 01/31/2020 | 03/17/2020 | 10-K |
| 10/31/2019 | 11/27/2019 | 10-Q |
Recent Forward Guidance
Updated 8/28/2026Latest: Q2 2026 Earnings Reported 8/27/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Net Sales Growth | 1.5% | 2.0% | |||||
| Q3 2026 Gross Margin | |||||||
| 2026 Net Sales Growth | 1.0% | 1.25% | -16.7% | -0.2% | Lowered | Guidance: 1.5% for 2026 | |
| 2026 Adjusted Gross Margin | |||||||
| 2026 Adjusted Operating Margin | 7.4% | 7.5% | 0.1% | Raised | Guidance: 7.4% for 2026 | ||
| 2026 Adjusted Diluted EPS | 2.35 | 2.4 | 2.1% | Raised | Guidance: 2.35 for 2026 | ||
| 2026 Capital Expenditures | 650.00 Mil | ||||||
Prior: Q1 2026 Earnings Reported 5/28/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Net sales | -0.01 | -0.01 | |||||
| 2026 Net sales | 0.01 | 0.01 | -1.0% | Lowered | Guidance: 0.03 for 2026 | ||
| 2026 Adjusted operating margin | 7.3% | 7.4% | 0 | Affirmed | Guidance: 7.4% for 2026 | ||
| 2026 Adjusted diluted earnings per share | 2.3 | 2.35 | 3.3% | Raised | Guidance: 2.27 for 2026 | ||
| 2026 Diluted earnings per share | 2.83 | 2.88 | |||||
Q4 2025 Earnings Reported 3/5/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Net sales growth | 1.0% | 1.5% | 2.0% | ||||
| 2026 Net sales growth | 2.0% | 2.5% | 3.0% | 0.6% | Higher New | Actual: 1.85% for 2025 | |
| 2026 Adjusted operating margin | 7.3% | 7.4% | 7.5% | 0.2% | Higher New | Actual: 7.2% for 2025 | |
| 2026 Adjusted diluted earnings per share | 2.2 | 2.27 | 2.35 | ||||
| 2026 Capital expenditures | 650.00 Mil | 23.8% | Higher New | Actual: 525.00 Mil for 2025 | |||
Q3 2025 Earnings Reported 11/20/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Net sales growth | 1.7% | 1.85% | 2.0% | 0.4% | Raised | Guidance: 1.5% for 2025 | |
| 2025 Operating margin | 7.2% | 0.4% | Raised | Guidance: 6.85% for 2025 | |||
| 2025 Net interest income | 20.00 Mil | 33.3% | Raised | Guidance: 15.00 Mil for 2025 | |||
| 2025 Effective tax rate | 28.0% | 1.0% | Raised | Guidance: 27.0% for 2025 | |||
| 2025 Capital expenditures | 500.00 Mil | 525.00 Mil | 550.00 Mil | 0 | Affirmed | Guidance: 525.00 Mil for 2025 | |
| 2025 Net store closures | 35 | 0 | Affirmed | Guidance: 35 for 2025 | |||
Insider Activity
Updated 8/25/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gruber, Julie | Chief Legal&Compliance Officer | Direct | Sell | 4202026 | 27.00 | 5,302 | 143,154 | 1,577,190 | Form |
| 2 | Chan, Eric Kayen | Chief Business & Strat Officer | Direct | Sell | 4132026 | 26.18 | 13,377 | 350,266 | 575,198 | Form |
| 3 | Fisher, John J | Trust | Sell | 4102026 | 25.40 | 300,000 | 7,620,000 | 11,348,237 | Form | |
| 4 | Thompson, Amanda J | Chief People Officer | Direct | Sell | 4072026 | 25.14 | 25,000 | 628,385 | 2,167,375 | Form |
| 5 | Barbeito, Horacio | President & CEO, Old Navy | Direct | Sell | 3232026 | 24.01 | 113,684 | 2,729,973 | 2,762,161 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gruber, Julie | Chief Legal&Compliance Officer | Direct | Sell | 4202026 | 27.00 | 5,302 | 143,154 | 1,577,190 | Form |
| 2 | Chan, Eric Kayen | Chief Business & Strat Officer | Direct | Sell | 4132026 | 26.18 | 13,377 | 350,266 | 575,198 | Form |
| 3 | Fisher, John J | Trust | Sell | 4102026 | 25.40 | 300,000 | 7,620,000 | 11,348,237 | Form | |
| 4 | Thompson, Amanda J | Chief People Officer | Direct | Sell | 4072026 | 25.14 | 25,000 | 628,385 | 2,167,375 | Form |
| 5 | Barbeito, Horacio | President & CEO, Old Navy | Direct | Sell | 3232026 | 24.01 | 113,684 | 2,729,973 | 2,762,161 | Form |
| 6 | O'Connell, Katrina | Chief Financial Officer | Direct | Sell | 3182026 | 23.85 | 153,413 | 3,658,498 | 274,316 | Form |
| 7 | Gruber, Julie | Chief Legal&Compliance Officer | Direct | Sell | 3182026 | 23.85 | 74,217 | 1,769,890 | 1,287,060 | Form |
| 8 | Breitbard, Mark | President & CEO, Gap Brand | Direct | Sell | 3182026 | 23.80 | 119,155 | 2,836,318 | 3,234,528 | Form |
| 9 | O'Connell, Katrina | Chief Financial Officer | Direct | Sell | 3162026 | 23.74 | 16,036 | 380,693 | 183,225 | Form |
| 10 | Breitbard, Mark | President & CEO, Gap Brand | Direct | Sell | 3162026 | 23.74 | 16,030 | 380,554 | 3,126,642 | Form |
| 11 | Gruber, Julie | Chief Legal&Compliance Officer | Direct | Sell | 12182025 | 28.00 | 30,000 | 840,000 | 1,047,058 | Form |
| 12 | Fisher, William Sydney | Trust | Sell | 12152025 | 26.81 | 11,140 | 298,663 | 73,820,075 | Form | |
| 13 | Fisher, John J | Trust | Sell | 12152025 | 27.04 | 3,971 | 107,376 | 20,192,958 | Form | |
| 14 | Fisher, William Sydney | Trust | Sell | 12152025 | 26.82 | 88,860 | 2,383,225 | 74,146,384 | Form | |
| 15 | Fisher, William Sydney | Trust | Sell | 12052025 | 27.02 | 400,000 | 10,808,000 | 77,100,300 | Form | |
| 16 | Fisher, Robert J | Trust | Sell | 12032025 | 27.45 | 500,000 | 13,725,000 | 63,944,830 | Form | |
| 17 | Fisher, John J | Trust | Sell | 12012025 | 27.75 | 250,000 | 6,938,100 | 20,835,170 | Form | |
| 18 | Donohue, Elisabeth B | Direct | Sell | 11262025 | 27.11 | 3,000 | 81,332 | 27,110 | Form | |
| 19 | Gruber, Julie | Chief Legal&Compliance Officer | Direct | Sell | 11262025 | 27.00 | 62,073 | 1,675,971 | 1,009,663 | Form |
| 20 | Fisher, Robert J | Trust | Sell | 9262025 | 22.90 | 500,000 | 11,448,150 | 64,785,127 | Form | |
| 21 | Fisher, William Sydney | Trust | Sell | 9172025 | 23.86 | 200,000 | 4,772,520 | 77,635,848 | Form | |
| 22 | Fisher, William Sydney | Trust | Sell | 9052025 | 23.82 | 243,064 | 5,788,666 | 82,245,365 | Form |
Investor Activity (13F)
Updated Aug 31, 202613F holdings as of Mar 31, 2026 (Q1 2026)
Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
Gap — Investor Video Playlist
Investor / Analyst
Friday's First Moves: AFRM & GAP Soar on Earnings, ULTA Shows Blemish
Products & Services
Behind-the-Scenes with the Gap Inc. Beauty Team | Gap Inc
Products & Services
The Old Navy Flag Tee Archives Tour | Gap Inc
Products & Services
Spend the Day at Gap Inc HQ with Christopher John Rogers | Gap Inc
Products & Services
Gap's "Sweats Like This" Campaign Comes to Life at Our SF HQ | Gap Inc
Products & Services
What the Banana Republic Team is Wearing in the New Year | Gap Inc
Investor / Analyst
🚀 Gap Inc. CRUSHES Q4 2024 Earnings! Big Dividend Hike & Stock Buybacks | GAP Stock Analysis
Investor / Analyst
Chart of the Day: Gap
Industry Resources
| Consumer Discretionary Resources |
| Retail Dive |
| Business of Fashion (BoF) |
| WWD (Women's Wear Daily) |
| National Retail Federation (NRF) |
| McKinsey & Company - Consumer |
| Mintel Consumer Trends |
| Apparel Retail Resources |
| Apparel News |
| Just Style |
| Sourcing Journal |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.
Core Cache Last Updated: 8/30/2026