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Gap upgraded to Buy as strong management and financials promise growth despite Old Navy's struggles.

Analyst Insights
28 Aug 2026
Seeking Alpha
View Source
Bullish
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The Gap, Inc. has been upgraded to a Buy rating due to decisive management actions and a strong balance sheet that support potential growth. While the Old Navy brand has underperformed, Gap's cost discipline, inventory control, and tariff refunds have helped expand margins and generate strong free cash flow. The Gap and Banana Republic brands are performing well, contrasting with challenges faced by Old Navy and Athleta. Additionally, share buybacks, a stable 3.3% dividend, and raised earnings guidance to $2.35–$2.45 strengthen the investment case for Gap.

More News (GAP)

Gap beats profit estimates but misses revenue due to Old Navy struggles, raises annual profit forecast.

Gap beats profit estimates but misses revenue due to Old Navy struggles, raises annual profit forecast.

Gap, Inc. reported Q3 earnings with an EPS of $0.52, beating analyst estimates of $0.48, but revenue of $3.65 billion fell short of the $3.69 billion expected, mainly due to weakness in its Old Navy brand. Despite the revenue miss and a year-over-yea...

Company Fundamentals
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14 hours ago
Gap Inc. names Michael Francis as new CEO of Old Navy, effective November 2026

Gap Inc. names Michael Francis as new CEO of Old Navy, effective November 2026

Gap Inc. announced Michael Francis will become President and CEO of Old Navy starting November 2, 2026, succeeding Haio Barbeito who will move to an advisory role. Francis, who joined Gap Inc. earlier in 2026 as Chief Customer Officer and Head of Mar...

Company Fundamentals
Bullish
21 hours ago
Gap Inc. Q2 sales down 2%, beats profit expectations, raises full-year earnings forecast

Gap Inc. Q2 sales down 2%, beats profit expectations, raises full-year earnings forecast

Gap Inc. reported a 2% decline in net sales for Q2 2026 but exceeded operating margin expectations due to strong gross margin and operational discipline. Old Navy sales fell 4%, while Gap brand saw a 10% comparable sales increase. The company returne...

Company Fundamentals
Bullish
21 hours ago
Athleta launches 'My World. My Rules.' campaign celebrating women's strength and new Fall collection.

Athleta launches 'My World. My Rules.' campaign celebrating women's strength and new Fall collection.

Athleta, a Gap Inc. brand, unveiled its Fall campaign "My World. My Rules.", highlighting women's empowerment through stories of strength by women excelling in male-dominated fields. The campaign features athletes Sofia Napoli, Jewelianna Ramos-Ortiz...

Others
Bullish
3 days ago
Gap Inc. will host a six-day New York Fashion Week event through its Encore membership program, offering exclusive experiences to members.

Gap Inc. will host a six-day New York Fashion Week event through its Encore membership program, offering exclusive experiences to members.

Gap Inc. is taking over New York Fashion Week for six days (September 9-14) through its Encore membership program. This initiative will offer members exclusive access to runway shows, designer experiences, live music, and other events across New York...

Market News
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4 days ago
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