Track market-moving stories before they get noisy

Jupiter Topco LLC bought a new position in The Gap, Inc. (NYSE:GAP – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 107,866 shares of the company’s stock, valued at approximately $2,017,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Cullen Frost Bankers Inc. bought a new position in shares of GAP in the 4th quarter worth approximately $26,000. Plato Investment Management Ltd bought a new stake in GAP during the fourth quarter valued at approximately $28,000. Global Retirement Partners LLC purchased a new stake in GAP during the second quarter valued at approximately $29,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in GAP during the second quarter valued at approximately $50,000. Finally, Quantbot Technologies LP bought a new position in GAP in the second quarter worth approximately $73,000. Hedge funds and other institutional investors own 58.81% of the company’s stock.

Analyst Upgrades and Downgrades GAP has been the topic of several analyst reports. The Goldman Sachs Group lifted their price target on shares of GAP from $25.00 to $27.00 and gave the stock a “buy” rating in a research note on Monday. Bank of America raised their target price on GAP from $26.00 to $27.00 and gave the stock a “neutral” rating in a report on Friday, August 28th. JPMorgan Chase & Co. restated a “neutral” rating and set a $27.00 target price (down from $35.00) on shares of GAP in a research note on Friday, May 29th. Morgan Stanley upped their target price on shares of GAP from $21.00 to $23.00 and gave the stock an “equal weight” rating in a report on Friday, August 28th. Finally, Jefferies Financial Group lowered GAP from a “buy” rating to a “hold” rating and cut their price target for the stock from $29.00 to $23.00 in a research note on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $27.36.

Get Our Latest Analysis on GAP GAP Stock Up 1.1% NYSE GAP opened at $22.31 on Friday. The Gap, Inc. has a 12 month low of $18.11 and a 12 month high of $29.36. The company has a current ratio of 1.82, a quick ratio of 1.11 and a debt-to-equity ratio of 0.38. The stock has a market cap of $7.84 billion, a PE ratio of 6.66, a P/E/G ratio of 0.94 and a beta of 2.08. The stock’s 50 day moving average is $20.19 and its 200 day moving average is $22.69.

GAP (NYSE:GAP – Get Free Report) last announced its quarterly earnings data on Thursday, August 27th. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. The business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.69 billion. GAP had a net margin of 8.14% and a return on equity of 19.72%. The company’s revenue was down 2.0% on a year-over-year basis. During the same period last year, the firm posted $0.57 EPS. GAP has set its FY 2026 guidance at 2.350-2.450 EPS. Research analysts predict that The Gap, Inc. will post 2.41 EPS for the current fiscal year.

GAP Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 7th will be paid a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, October 7th. GAP’s dividend payout ratio (DPR) is presently 20.90%.

Key Headlines Impacting GAP Here are the key news stories impacting GAP this week:

Positive Sentiment: New handbag strategy could expand growth opportunities: Gap is introducing “GapBag” for fall 2026, featuring handbags designed by Reed Krakoff. The move expands the brand into the lucrative accessories market and could increase average customer spending and diversify revenue beyond apparel. Gap introduces GapBag for fall 2026 with handbags by Reed Krakoff Positive Sentiment: Momentum factors remain favorable: Zacks highlighted GAP as a strong momentum stock, which may attract technical and quantitative investors after the shares moved above their 50-day average. Why Gap is a strong momentum stock Neutral Sentiment: Analyst sentiment is cautious: The Gap received an average “Hold” rating, suggesting Wall Street sees balanced upside and downside rather than a clear catalyst for re-rating. The Gap receives average Hold rating Neutral Sentiment: CEO Richard Dickson is scheduled to participate in the Goldman Sachs Global Consumer & Retail Conference on September 14. The event could provide updates on strategy, sales trends and the handbag rollout, but no new financial guidance was announced. Gap to participate in Goldman Sachs conference Neutral Sentiment: Gap also announced a New York City youth education partnership with FIT and BroSis. The initiative supports brand goodwill but is unlikely to materially affect near-term earnings. Gap, FIT and BroSis partnership GAP Company Profile (Free Report)

Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.

Further Reading Five stocks we like better than GAP The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern Want to see what other hedge funds are holding GAP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Gap, Inc. (NYSE:GAP – Free Report).

Receive News & Ratings for GAP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GAP and related companies with MarketBeat.com's FREE daily email newsletter.

Gap Inc. (NYSE:GAP) reported second-quarter fiscal 2026 net sales of $3.7 billion, down 2% from a year earlier, while comparable sales declined 1%. The retailer said it exceeded its profit expectations through pricing discipline, inventory management and gross-margin strength, even as performance varied sharply among its brands.

Chief Executive Officer Richard Dickson said Gap’s namesake brand and Banana Republic continued to gain momentum, while Old Navy faced seasonal assortment and traffic challenges and Athleta remained in a turnaround phase. The company narrowed its full-year sales outlook but raised its adjusted operating-margin and earnings-per-share forecasts.

Gap Brand Extends Momentum, While Old Navy Misses Expectations The Gap brand posted a 10% increase in comparable sales and a 9% rise in net sales, marking its 11th consecutive quarter of positive comparable sales growth. Dickson said women’s led the quarter, with solid results in men’s and accelerating sales in kids and baby. Denim and fleece remained key destination categories. Gap also gained market share, according to the company, while its customer file expanded and discounting declined. The retailer cited collaborations and marketing efforts, including a partnership with Hailey Bieber that reimagined two denim silhouettes. Dickson said the Hailey Jean sold out quickly and created a “meaningful halo” across the broader business.

Gap relaunched its fragrance line at the end of the quarter and plans to launch bags during Fashion Week in September as it expands into accessories. The company expects to complete about 35 Gap store remodels this year, bringing roughly one-quarter of its North American specialty fleet into its latest store concept by year-end.

Old Navy, however, reported a 4% decline in both net sales and comparable sales. Dickson said women’s summer seasonal products accounted for about 3 percentage points of the comparable-sales pressure, with dresses, shorts and swim affected by assortment and pricing decisions that weakened the brand’s value proposition.

The company also experienced an unexpected slowdown in traffic as the quarter progressed. Dickson said Old Navy’s summer marketing did not generate the traffic management expected, prompting changes to fall marketing and product plans.

“We see value as a perception based on product and pricing,” Dickson said during the question-and-answer session. “When we deliver the right product at the right price, the customer responds.”

Old Navy’s fall assortment emphasizes denim, activewear, sweaters and knits, categories management said should become more meaningful as the summer seasonal headwind subsides. The retailer launched a denim campaign featuring Cardi B, which Dickson said was Old Navy’s most-viewed campaign in its history and was helping improve traffic and women’s-denim conversion in August. The brand also partnered with digital creator MrBeast for back-to-school content.

Old Navy launched its Beauty Co. collection nationwide and plans to introduce an exclusive licensed sports merchandise collection with Fanatics beginning with football season. Its activewear category will be marketed under the new Old Navy Sport brand, including about 40 shop-in-shops in select stores.

Gap announced that Michael Francis will become Old Navy brand president and CEO effective Nov. 2, succeeding Haio Barbeito. Barbeito will serve in an advisory capacity during the transition. Dickson said Francis joined the company in May and has already worked with leadership on Old Navy’s fall plans and marketing execution.

Banana Republic Gains, Athleta Remains Under Pressure Banana Republic recorded a 3% comparable-sales increase and a 1% net-sales increase, its fifth consecutive quarter of positive comparable-sales growth. Management cited balanced strength in men’s and women’s, with outerwear, sweaters, denim and linen performing well.

The company said recently upgraded Banana Republic stores, including locations at Century City and Tysons Corner, are producing higher customer spending. Donald Kohler joined the brand as president and CEO in July.

Athleta’s net sales and comparable sales each declined 12%. The company said it tightly managed inventory while selectively testing new products, including the Journey Travel collection. Management is taking a conservative approach to inventory and marketing investment as it evaluates customer response to new merchandise.

Dickson said Athleta is focused on increasing newness, reducing its reliance on promotions and rebuilding customer engagement through better product and storytelling. While the approach could limit near-term sales improvement, the company said it is intended to rebuild the brand on a more sustainable and profitable foundation.

Margins, Cash Returns and Updated Outlook Second-quarter reported gross margin was 52.8%, while adjusted gross margin was 41.4%, up 20 basis points year over year. The adjusted measure excluded a cost-of-goods-sold adjustment related to an expected net recovery of tariffs previously paid under the International Emergency Economic Powers Act.

Chief Financial Officer Katrina O’Connell said adjusted merchandise margin expanded 80 basis points, aided by Gap brand performance and partially offset by higher promotions at Old Navy. The company used promotional activity to clear seasonal Old Navy inventory, which O’Connell said is now largely behind it.

Adjusted operating margin was 7.1%, down 70 basis points from a year earlier, while adjusted earnings per share fell to $0.52 from $0.57. The company reported earnings per share of $1.38 on a reported basis.

Second-quarter capital expenditures were $154 million, bringing year-to-date spending to $289 million. Gap expects about $650 million in capital expenditures for the full year, largely for store openings and remodels, technology and supply-chain investments. The company paid $62 million in dividends during the quarter, and its board approved a third-quarter dividend of $0.175 per share. Gap repurchased an additional $200 million of stock in the quarter, bringing year-to-date repurchases to more than $600 million, or 26 million shares. About $400 million remains under its authorization. Quarter-end inventory at cost was flat from a year earlier, while units increased 4% because of higher in-transit inventory tied largely to geopolitical disruptions. For fiscal 2026, Gap now expects net sales growth of 1% to 1.5%, with comparable sales roughly in line. It forecasts Old Navy comparable sales to range from flat to down 1%, Gap comparable-sales growth in the high-single-digit to low-double-digit range, low-single-digit growth at Banana Republic, and Athleta trends similar to the first half.

The company raised its adjusted operating-margin forecast to 7.4% to 7.6%, compared with 7.3% last year, and expects adjusted EPS of $2.35 to $2.45, up 10% to 15% year over year. The higher outlook reflects an improved gross-margin view, including expected tariff relief, and a lower weighted-average share count following repurchases.

For the third quarter, Gap expects net sales growth of 1.5% to 2.5%, with comparable sales trailing net sales by about 50 basis points. Management said the quarter has started positively, supported by sequential improvement at Old Navy, although peak selling periods and the rollout of newer initiatives are still ahead.

About GAP (NYSE:GAP) Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.

Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Gap Inc. (NYSE: GAP) today announced that its board of directors has authorized a third quarter fiscal year 2026 dividend of $0.175 per share, payable on or after October 28, 2026, to shareholders of record at the close of business on October 7, 2026.

About Gap Inc.
Gap Inc., a purpose-driven house of iconic brands, is the largest specialty apparel company in America. Its Old Navy, Gap, Banana Republic, and Athleta brands offer clothing, accessories, and lifestyle products for men, women and children available worldwide through company-operated and franchise stores, and e-commerce sites. Since 1969, Gap Inc. has created products and experiences that shape culture, while doing right by employees, communities and the planet through its commitment to bridge gaps to create a better world. For more information, please visit www.gapinc.com.

Investor Relations Contact:
Shirley Martin
[email protected]

Media Relations Contact:
[email protected]

SOURCE Gap Inc.

Also from this source

Key Takeaways Athleta's sales fell 12% to $270M, with comps down 11% as legacy inventory clearance weighed on Q1 results.Gap says 2026 is a transition year for Athleta, focused on product, positioning and merchandising.New Journey travel collection and Elation leg silhouettes showed strong engagement and sell-through. Gap Inc.’s (GAP - Free Report) turnaround has gained traction across much of its portfolio, but Athleta remains the notable exception. While Gap, Old Navy and Banana Republic continue to post positive comparable sales growth, Athleta is still in the early stages of a multiyear rebuilding effort. Management has been clear that 2026 is a transition year for the brand, with the priority on rebuilding product, brand positioning and merchandising rather than pursuing near-term sales growth. The key question for investors is whether these foundational changes can translate into sustainable momentum over the coming quarters.

The first-quarter results highlighted the work still ahead. Athleta's net sales declined 12% year over year to $270 million, while comparable sales fell 11%, missing the company's expectations. Management attributed the weakness primarily to efforts to clear legacy inventory, a process that has taken longer than anticipated and weighed on top-line performance. Despite the sales pressure, Gap noted that introducing a cleaner assortment remains essential before the brand can return to more consistent growth.

Encouragingly, early signs suggest the strategy may be gaining traction beneath the surface. Gap reported positive customer response to Athleta's new Journey travel collection in select locations, with strong engagement and sell-through rates. New leg silhouettes across core franchises such as the Elation line have also performed well, giving management greater confidence in its future product direction. The company plans to continue clearing older inventory through the second quarter before introducing a broader assortment that better reflects Athleta's long-term positioning in the fall season.

While Athleta is likely to remain a drag on Gap's overall performance in the near term, management expects gradual improvement in the second half as new products gain a larger share of the assortment. Leadership continues to view Athleta as an important long-term growth engine and is investing in product, talent and creative capabilities to strengthen the brand's competitive position. The pace at which these initiatives translate into stronger comparable sales will likely determine whether Athleta can become a meaningful contributor to Gap's next phase of growth.

GAP’s Price Performance, Valuation & EstimatesShares of this Zacks Rank #3 (Hold) company have lost 31.9% in the past six months compared with the industry’s decline of 12.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, GAP trades at a forward price-to-earnings ratio of 7.90X compared with the industry’s average of 14.44X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GAP’s current fiscal-year sales and earnings implies year-over-year growth of 1.2% and 9.9%, respectively. For the next fiscal year, the consensus estimate indicates a 1.9% rise in sales and 10.8% growth in earnings. The company’s EPS estimate for both fiscal years has remained stable in the past seven days.

Image Source: Zacks Investment Research

Key PicksRoss Stores (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.

Five Below, Inc. (FIVE - Free Report) , which operates as a specialty value retailer, currently flaunts a Zacks Rank #1. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.36% and 34.3%, respectively, from the year-ago figures.

Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR sports a Zacks Rank of 1. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.

The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures.