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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Gap (GAP - Free Report) The Gap, Inc. is a international specialty retailer offering a diverse range of clothing, accessories and personal care products. It offers products for men, women and children under the Old Navy, Gap, Banana Republic and Athleta brands. The company’s products include denim, tees, button-downs, khakis and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of May 2, 2026, Gap had around 3,500 store locations in 35 countries, of which 2,477 were company-operated.

GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Retail-Wholesale stock. GAP has a Momentum Style Score of B, and shares are up 7.2% over the past four weeks.

For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $2.39 per share. GAP boasts an average earnings surprise of +2.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GAP should be on investors' short list.

The Gap (GAP) remains a Strong Buy, with valuation still reflecting a significant discount despite a 20% stock recovery and robust financials. GAP demonstrated solid Q2 performance, beating EPS estimates, advancing buybacks, and maintaining strong liquidity with $2.1B cash and $382M short-term investments. Management guides for 1–1.5% net sales growth, improved gross margin, and EPS of $2.35–$2.45, while executing $650M in CAPEX and pursuing $150M in cost savings.

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.

Gap Inc. (GAP +12.94%) shares jumped about 13% Friday, the day after the apparel retailer reported fiscal second-quarter results and nudged its full-year profit outlook higher. The market liked the margins, the raised guidance, and news of a new leader for the company's biggest brand.

But the quarter was more lopsided than a pop like that suggests. Gap Inc. runs four brands (Old Navy, Gap, Banana Republic, and Athleta), and in the fiscal second quarter, exactly one of them was growing in any meaningful way. Total company net sales fell 2% year over year to $3.7 billion.

The brand that was growing happens to share its name with the stock. Here's a closer look at the quarter, brand by brand.

Image source: Getty Images.

The namesake Gap brand grew net sales 9% year over year to $844 million, with comparable sales up 10% -- what CEO Richard Dickson called "another quarter of double-digit comparable sales." That's the second quarter in a row of double-digit comparable growth, and it's momentum most mall retailers would love to have.

The rest of the portfolio went the other way. Old Navy's net sales fell 4% to $2.1 billion, with comparable sales also down 4% -- a reversal from growth a year ago, which management attributed partly to a weak women's seasonal assortment and slowing traffic.

Banana Republic inched up 1% to $478 million, with comparable sales up 3%. And Athleta, the activewear chain, saw net sales sink 12% to $264 million. Its comparable sales fell just as much, on top of a 9% decline a year earlier.

Old Navy is more than half the companyWhy does one brand's stumble outweigh another's surge? Scale. Old Navy's $2.1 billion in quarterly net sales is about 57% of companywide net sales. The growing Gap brand, at $844 million, is well under half Old Navy's size. Growth of 9% at the smaller brand cannot offset a 4% decline at the bigger one. In dollars, Old Navy's slip erased roughly $85 million of quarterly sales while the Gap brand added about $70 million, which is how a company with a hot brand still shrank overall.

Management is acting on it. Gap Inc. named retail veteran Michael Francis as Old Navy's next president and CEO, succeeding Haio Barbeito.

And the company's updated outlook quietly acknowledges the problem. It now assumes Old Navy comparable sales of flat to down 1% for the year, cut from flat to up 1%, while its assumption for the Gap brand moved up to high-single-digit to low-double-digit comparable growth. The full-year plan got better, in other words, and the only brand assumption that moved up was the smaller one.

Check the adjusted numbers, not the reported onesThe reported results look spectacular. Gross margin came in at 52.8%, and earnings reached $1.38 per share.

But most of that is an accounting event, not retailing. The quarter included a $417 million net benefit to cost of goods sold from refunds of U.S. tariffs the company had previously paid, with the remaining refund cash expected in the third quarter.

Set the refund aside, and the underlying quarter was solid rather than stunning: an adjusted gross margin of 41.4%, up 20 basis points, and adjusted earnings of $0.52 per share. For the full year, the company raised its adjusted outlook to between $2.35 and $2.45 in earnings per share, up from a range of $2.30 to $2.40, on an adjusted operating margin of about 7.4% to 7.6%. Notably, the net sales outlook came down a touch at the top end (up 1% to 1.5%, versus up 1% to 2% before).

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The case rests on one brandWith the stock near $24 as of this writing, the valuation works out to about 10 times the midpoint of this year's adjusted earnings-per-share outlook.

And the dividend yields about 3%. That's an inexpensive price for a company whose profit outlook just improved.

But the cheapness has a reason. The company's largest brand is shrinking, its fourth brand is shrinking faster, and the raised guidance leans on the one brand that's working (plus margin discipline) to cover for Old Navy until a new leader can get its sales growing again.

To management's credit, the Gap brand's turnaround has now run long enough to take seriously, and I think it has earned the benefit of the doubt. Just know what you'd be buying. Until Old Navy grows again, one brand is carrying the company.

Gap (GAP.N) named industry veteran Michael Francis as Old Navy's new CEO on Thursday to reinvigorate the struggling brand, while improved pricing led to a ​quarterly profit beat and a strong forecast for the wider company.

Shares of the company soared 15% in ‌extended trading on the leadership change at Old Navy, its biggest brand, and after the apparel retailer raised its annual profit forecast, partly on robust sales at the Gap brand.

The company, three years into CEO Richard Dickson's tenure, has been trying to revive demand after a prolonged period of inconsistent sales ​across its banners, which also include Banana Republic and Athleta. Merchandise focused on current trends and expanded marketing campaigns ​have helped boost its brands' relevance, even as consumers curb discretionary spending.

Average unit retail price ⁠rose across all Gap Inc brands in the quarter, lifting the company's adjusted merchandise margin by 80 basis points, excluding ​a net benefit tied to the recovery of tariffs.

The Gap chain posted a 10% comparable sales increase in the second quarter, ​marking its eleventh straight quarter of growth. Analysts, on average, expected an 8.8% rise, according to data compiled by LSEG.

Comparable sales at Old Navy fell 4% in the quarter, compared with a 2% increase a year earlier, while Athleta's comparable sales fell 12% after a 9% decline last year.

New ​leadership at Old Navy will be "instrumental in unlocking the brand's full potential," Dickson said on a post-earnings call.

Old Navy's dresses, ​shorts and other summer apparel failed to generate strong sales in the second quarter - but the company expects its fall assortment, from sweaters ‌to denim ⁠jeans, to draw in more shoppers, he added.

Dickson highlighted Old Navy's partnership with Grammy-winning rapper Cardi B, and its collaboration with YouTuber MrBeast on a back-to-school campaign, as examples of its expanded marketing push to reach younger shoppers.

The Old Navy leadership change signals the company's push to bring the same cultural relevance luring shoppers to Gap to its largest brand, eMarketer analyst Suzy Davidkhanian ​said.

Gap raised its adjusted annual ​earnings-per-share forecast by 5 cents ⁠at both ends to a range of $2.35 to $2.45. The adjusted outlook excludes the impact of tariff refunds.

Gap said it recorded a $417 million adjustment for net tariff recovery in the reported quarter and received ​refunds of $95 million and related interest income of $5 million, with the remaining refunds and interest ​income expected in ⁠the current quarter.

The company revised its fiscal 2026 sales growth outlook to between 1% and 1.5%, down from 1% to 2%. Analysts estimate a 1.1% increase.

Gap said the outlook considers consumer trends and the broader economic and geopolitical environment, while recognizing risks related to ⁠energy prices ​and U.S. tariffs.

Revenue for the quarter ended August 1 fell 2% to $3.65 ​billion, narrowly missing analysts' estimate of about $3.69 billion, while adjusted profit of 52 cents per share beat expectations of 48 cents.

Gap Inc (NYSE:GAP) reported financial results for the second quarter Thursday after the bell. Here’s a look at the key highlights from the quarter.

Gap shares are advancing steadily. Why are GAP shares climbing? Gap Q2 Key Metrics Q2 Revenue: $3.65 billion, versus estimates of $3.69 billion Q2 Adjusted EPS: 52 cents, versus estimates of 48 cents Net sales fell 2% on a year-over-year basis as store sales decreased 3% and online sales dropped 1% compared to the prior year’s quarter, representing 35% of total net sales. 

Comparable sales were down 1% overall. Here’s a breakdown of comparable sales by brand.

Old Navy: down 4% Gap: up 10% Banana Republic: up 3% Athleta: down 12% “While top-line results in the second quarter were modestly below expectations, continued operational and financial rigor contributed to gross margin strength resulting in the company exceeding profit expectations,” said Richard Dickson, president and CEO of Gap.

“We are particularly proud of the momentum at the Gap brand, which posted another quarter of double-digit comparable sales. We have work to do at Old Navy, but we have a clear understanding of the factors that impacted performance and are taking targeted actions that are already driving improved results.”

In connection with earnings, Gap announced a CEO transition at Old Navy. Michael Francis will take over as president and CEO of Old Navy as Haio Barbeito transitions to an advisory role.

What’s Next For Gap?Gap sees third-quarter revenue of approximately $3.96 billion to $4 billion versus estimates of $3.98 billion. The company also guided for full-year revenue of $15.55 billion to $15.63 billion versus estimates of $15.53 billion.

Gap raised its full-year adjusted earnings guidance from a range of $2.30 to $2.40 per share to a new range of $2.35 to $2.45 per share versus estimates of $2.34 per share.

Gap management will further discuss the quarter on an earnings call at 5 p.m. ET.

GAP Shares Jump After EarningsGAP Price Action: Gap shares were up 11.45% in Thursday’s after-hours session, trading at $23.17 at publication time, according to Benzinga Pro data.

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Gap Inc (NYSE:GPS) raised its full-year profit forecast after posting better-than-expected quarterly earnings, driven by strong sales growth at its namesake brand, sending shares up more than 11%.

The retailer reported second-quarter adjusted earnings of $0.52 per share, topping analyst estimates of $0.48, as gross margins expanded 20 basis points to 41.4%.

Revenue came in at $3.7 billion, roughly in line with estimates of $3.69 billion but down 2% from a year earlier.

Comparable sales at the Gap brand rose 10% year-over-year, marking another quarter of double-digit growth, while Old Navy's net revenue fell 4% to $2.1 billion. Banana Republic revenue rose 1% to $478 million, and Athleta sales declined 12% to $264 million.

Overall comparable sales across the company fell 1% year-over-year. Net income came in at $501 million, with free cash flow of $261 million year-to-date.

The company raised its full-year adjusted earnings guidance to a range of $2.35 to $2.45 per share, above the $2.34 analyst estimate, and now expects revenue growth of 1% to 1.5%.

For the third quarter, Gap guided to revenue growth of 1.5% to 2.5% year-over-year, with gross margin expansion of 25 to 75 basis points and slight leverage on operating expenses.

Gap also announced Michael Francis will become the next President and CEO of Old Navy, succeeding Haio Barbeito.

"Continued operational and financial rigor contributed to gross margin strength, resulting in the company exceeding profit expectations," said Gap Inc (NYSE:GPS) CEO Richard Dickson.

"We have work to do at Old Navy, but we are taking targeted actions that are already driving improved results."

The CEO added that Old Navy is “poised for its next chapter of growth.”

"Michael is one of the most respected commercial, brand and customer leaders in retail,” Dickson added.

Gap (GAP - Free Report) reported $3.65 billion in revenue for the quarter ended July 2026, representing a year-over-year decline of 2%. EPS of $0.52 for the same period compares to $0.57 a year ago.

The reported revenue represents a surprise of -1.86% over the Zacks Consensus Estimate of $3.72 billion. With the consensus EPS estimate being $0.50, the EPS surprise was +4%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Gap performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable Sales - Old Navy - YoY change: -4% versus the four-analyst average estimate of -2%.Number of Store Locations - Gap - Total: 588 versus 589 estimated by four analysts on average.Number of Store Locations - Banana Republic - Total: 391 versus the four-analyst average estimate of 396.Number of Store Locations - Old Navy North America: 1,241 compared to the 1,241 average estimate based on four analysts.Comparable Sales - YoY change: -1% versus 0.4% estimated by four analysts on average.Comparable Sales - Banana Republic - YoY change: 3% compared to the 1.6% average estimate based on four analysts.Comparable Sales - Gap - YoY change: 10% versus 8.3% estimated by four analysts on average.Number of Store Locations - Company-operated stores: 2,471 versus the four-analyst average estimate of 2,477.Square Footage - Banana Republic North America: 2.80 Msq ft versus 2.86 Msq ft estimated by three analysts on average.Net Sales- Gap Global- Total: $844 million versus $843.1 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.Net Sales- Banana Republic Global- Total: $478 million versus $475.09 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.6% change.Net Sales- Old Navy Global- Total: $2.06 billion compared to the $2.11 billion average estimate based on four analysts. The reported number represents a change of -4.1% year over year.View all Key Company Metrics for Gap here>>>

Shares of Gap have returned +4.2% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

The Gap, Inc. (GAP) Q2 2026 Earnings Call Transcript

Gap's (GAP.N) shares jumped as much as 24.1% to a four-month ​high, after the apparel retailer named industry veteran Michael Francis as CEO of ‌Old Navy, a move aimed at reinvigorating the brand in a challenging spending environment.

Old Navy, Gap's biggest brand, has struggled to gain traction in select women's apparel categories in recent quarters, a key hurdle ​in the company's turnaround.

Since CEO Richard Dickson took charge in 2023, Gap has ​revamped its leadership and marketing, boosting Gap and Banana Republic, but Old ⁠Navy continues to lag.

"It is true that the family demographic that Old Navy serves ​is under pressure, but Old Navy did not give them enough reasons to buy," said ​Neil Saunders, managing director of GlobalData, adding that the weakness points to a broader problem that Gap can no longer pass off as a "modest range misstep".

Gap shares were trading 15% higher at $23.95, and could add ​about $1.14 billion to the company's market value if gains hold.

Some retailers are bringing new ​leaders on board to revive their struggling brands. Tapestry's (TPR.N) Kate Spade last month appointed renowned designer Jonathan ‌Saunders as ⁠executive creative director.

"The appointment of a new Old Navy leader underscores management's focus on stabilizing performance at the company's largest banner," Jefferies analysts said in a note.

Francis joined Gap in March as Old Navy's chief customer officer. He brings over four decades of marketing, commercial ​and business transformation ​experience, including roles at ⁠Target and Walmart.

Gap lifted its annual profit forecast after topping quarterly estimates. However, it narrowed its fiscal 2026 sales growth target, citing economic ​uncertainty.

Its quarterly comparable sales grew about 10%, while at Old Navy ​they were ⁠down 4%, the first decline in 12 quarters.

The company's forward 12-month price-to-earnings ratio stood at 8.33, compared with American Eagle Outfitters' 8.94 and Urban Outfitters' 11.93.

"Gap should be able to end ⁠the full ​fiscal year on a positive sales note, but it ​needs to get the big engine of Old Navy whirring again to keep advancing at a convincing pace," Saunders ​said.

The Gap, Inc. is upgraded to a Buy as decisive management action and a strong balance sheet support further upside. Despite Old Navy's weakness, GAP's cost discipline, inventory control, and tariff refunds drive margin expansion and robust free cash flow. Brand divergence is pronounced: Gap and Banana Republic outperform, while Old Navy and Athleta face macro and sector-specific headwinds.

Gap GAP shares rose about 17% in premarket trading on Friday after the apparel retailer named industry veteran Michael Francis as president and CEO of Old Navy.

Francis will take over the company’s largest brand on November 2, replacing Haio Barbeito.

The leadership change comes as Old Navy struggles to regain momentum, particularly in women’s apparel categories.

The brand reported a 4% decline in comparable sales in the second quarter, marking its first comparable-sales decline in 12 quarters.

Seasonal merchandise and a sharper-than-expected slowdown in customer traffic weighed on results.

Gap CEO Richard Dickson said the company was entering the second half with mixed performance across its brands.

He acknowledged that the company did not achieve the revenue outcome it wanted, although operational discipline helped support gross margins.

The retailer has revamped its leadership and marketing since Dickson became CEO in 2023, with Gap and Banana Republic showing stronger performance. Old Navy, however, has remained a key area of weakness.

Gap plans to address Old Navy’s performance by focusing more heavily on denim, activewear, sweaters and knits. Dickson said seasonal pressures are expected to ease in the third quarter.

Old Navy is the third-largest denim brand in the US, according to Gap, and management sees opportunities in styles including low-rise and baggy jeans. The retailer also plans to expand its activewear offering with Old Navy Sport this fall.

Analysts have pointed to the importance of the leadership change for the broader turnaround. Jefferies said the appointment highlights management’s focus on stabilizing performance at Old Navy, given its importance to the company.

Neil Saunders, managing director of GlobalData, said in a Reuters report that the brand’s customer base is under pressure but argued that Old Navy had also failed to provide consumers with enough reasons to shop.

Morgan Stanley also raised its price target on Gap to $23 from $21 while maintaining an Equalweight rating.

The firm cited better-than-expected second-quarter results, constructive trends at Old Navy and resilient margins, but said it wanted more evidence that the brand can improve during the second half.

Gap topped quarterly expectations, supported by stronger pricing and sales at its namesake brand, and raised its annual profit forecast.

However, it narrowed its fiscal 2026 revenue growth outlook to 1%-1.5% from the previous range of 1%-2%, citing economic uncertainty.

At the same time, adjusted earnings-per-share guidance was raised to $2.35-$2.45 from $2.30-$2.40.

The contrasting guidance highlights the challenges facing Gap as it seeks to improve profitability while rebuilding sales momentum at Old Navy.

Saunders said Gap could finish the year with positive sales, but argued that the retailer needs its largest brand to regain momentum for the broader turnaround to progress convincingly.

Gap’s forward 12-month price-to-earnings ratio stood at 8.33, below American Eagle Outfitters at 8.94 and Urban Outfitters at 11.93.

Gap Inc (NYSE:GAP) on Thursday reported better-than-expected second-quarter earnings and raised their FY26 EPS guidance above estimates.

Revenue came in at $3.65 billion, versus estimates of $3.69 billion. Adjusted EPS came in at 52 cents, versus estimates of 48 cents.

Gap sees third-quarter revenue of approximately $3.96 billion to $4 billion versus estimates of $3.98 billion. The company also guided for full-year revenue of $15.55 billion to $15.63 billion versus estimates of $15.53 billion.

Gap raised its full-year adjusted earnings guidance from a range of $2.30 to $2.40 per share to a new range of $2.35 to $2.45 per share versus estimates of $2.34 per share.

"While top-line results in the second quarter were modestly below expectations, continued operational and financial rigor contributed to gross margin strength resulting in the company exceeding profit expectations," said Richard Dickson, president and CEO of Gap.

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Gap shares surged 14.3% to trade at $23.76 on Friday.

These analysts made changes to their price targets on Gap following earnings announcement.

BTIG analyst Robert Drbul maintained the stock with a Buy and raised the price target from $26 to $27. B of A Securities analyst Lorraine Hutchinson maintained the stock with a Neutral and raised the price target from $26 to $27. Considering buying GAP stock? Here’s what analysts think:

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Key Takeaways Gap's comparable sales jumped 10%, while Old Navy fell 4% and Athleta declined 12%.Adjusted gross margin rose 20 basis points, aided by Gap's strength and tariff mitigation efforts.Gap raised adjusted EPS guidance to $2.35-$2.45 as margin expectations and repurchases support results. The Gap, Inc. (GAP - Free Report) reported adjusted earnings of 52 cents per share for the second quarter of fiscal 2026, down 8.8% year over year but came above the Zacks Consensus Estimate of 50 cents. Revenues of $3.65 billion declined 2% year over year and missed the consensus mark of $3.72 billion by 1.9%. Comparable sales fell 1%, while gross margin strength helped the company exceed profit expectations.

Gap delivered a 10% comparable-sales increase, while Old Navy declined 4% and Athleta fell 12%. Management highlighted disciplined pricing, inventory management and stronger execution at key brands as drivers of profitability.

As a result, Gap’s shares have jumped nearly 15% in after-hours trading yesterday. This Zacks Rank #3 (Hold) stock has dipped 0.8% in the past three months compared with the industry’s 9.5% decline.

GAP Expands Brand MomentumStore sales decreased 3%, while online sales declined 1% and represented 35% of total net sales.

The Gap brand remained the strongest performer in the portfolio. Net sales reached $844 million, up 9% year over year, while comparable sales increased 10%. Management attributed the performance to culturally relevant storytelling and strength in destination categories such as denim, fleece, and kids and baby. Our model had expected Gap brand's sales of $833.9 million for the reported quarter.

GAP Sees Mixed Brand TrendsOld Navy generated second-quarter net sales of $2.1 billion, down 4% year over year, with comparable sales also declining 4%. Management said weaker women’s seasonal assortments and an unexpected slowdown in traffic pressured results.

Banana Republic delivered improvement, with net sales of $478 million, up 1%, and comparable sales up 3%. The brand benefited from stronger assortment, marketing and storytelling, with balanced performance across men’s and women’s categories.

Athleta remained under pressure, with second-quarter net sales of $264 million declining 12% and comparable sales falling 12%. Management said the brand is focused on disciplined execution, improving inventory productivity and rebuilding customer engagement through stronger product and storytelling.

We had anticipated sales of $2.1 billion for Old Navy, $476.5 million for Banana Republic and $280.5 million for Athleta.

Gap Strengthens Margin PerformanceGap reported a gross margin of 52.8%, benefiting from adjustment related to the expected recovery of tariffs previously imposed under the International Emergency Economic Powers Act. Adjusted gross margin, excluding this benefit, was 41.4%, up 20 basis points year over year.

Adjusted merchandise margin expanded 80 basis points, supported by the Gap brand and tariff mitigation strategies. However, higher promotional activity at Old Navy partially offset gains. Adjusted operating margin was 7.1%, while adjusted earnings per share came in at $0.52.

Gap Returns Cash to ShareholdersGap ended the quarter with $2.5 billion in cash, cash equivalents and short-term investments, while year-to-date net cash from operating activities totaled $550 million. Free cash flow reached $261 million year to date.

The company returned $262 million to shareholders during the quarter through share repurchases and dividends. Year to date, Gap has returned $726 million to shareholders, including $601 million of share repurchases and $125 million of dividends.

GAP Updates Fiscal 2026 OutlookGap updated its fiscal 2026 outlook, expecting full-year net sales growth of 1-1.5%, compared with the prior forecast of 1-2%. The company now expects Gap comparable sales growth in the high-single to low-double-digit range and Old Navy comparable sales to be flat to down 1%.

The company raised its adjusted operating margin outlook to 7.4-7.6% from 7.3-7.5% previously. Adjusted earnings per share guidance increased to $2.35-$2.45, supported by improved gross margin expectations and a lower weighted average share count following repurchase activity.

Key Stocks to ConsiderWe have highlighted three better-ranked stocks, namely, Target Corporation (TGT - Free Report) , American Eagle Outfitters (AEO - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) .

Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.4% and 11.4%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. The company currently carries a Zacks Rank #2 (Buy).

The consensus estimate for AEO’s current financial-year sales and EPS indicates growth of 5.7% and 17.3%, respectively, from the year-ago reported numbers. AEO delivered a trailing four-quarter earnings surprise of 48.5%, on average.

Boot Barn is a leading lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. It currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS is expected to rise 15.7% and 22.6%, respectively, from the year-ago reported figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.

Encore members can unlock runway shows, designer experiences, live entertainment and
exclusive events across New York City, culminating in a live performance by Gigi Perez

, /PRNewswire/ -- Gap Inc. (NYSE: GAP) today announced a six-day New York Fashion Week takeover through Encore, its cross-brand membership program spanning Old Navy, Gap, Banana Republic and Athleta. From September 9–14, Encore will give members new ways to experience fashion, culture and entertainment through runway shows, designer experiences, live music and exclusive events across New York City.

The activation builds on Encore's February launch and brings its promise of access beyond retail to one of fashion's most anticipated weeks. Through a growing roster of partners in fashion, music and entertainment, Encore gives fashion lovers across the country a way into shows, designers and cultural moments that define Fashion Week, including experiences rarely open to the public. Beginning today, members can explore the experiences through a dedicated New York Fashion Week microsite, which will serve as the destination for the latest offerings, event details and entry to the Encore Market.

Members will be able to unlock a rotating lineup of experiences across the city, including access to fashion shows from Alice + Olivia, Grace Ling, Kim Shui, KidSuper and Sandy Liang; a behind-the-scenes atelier tour with Anna Sui; a Norma Kamali installation; a daytime dance party with VA$HTIE; and tickets to one of New York City's hottest concert residencies.

Encore will also unlock special opportunities for members at select Gap and Banana Republic moments taking place around Fashion Week, with additional experiences and details to be revealed by each brand.

The takeover will culminate September 14 with Encore After Hours, an intimate member event at the iconic Cherry Lane Theatre hosted by Gap Inc. EVP & Creative Director, Zac Posen, in partnership with Rolling Stone, featuring special guests, conversation and a live performance by singer-songwriter Gigi Perez.

"Encore gives members more value beyond traditional rewards, with access to coveted cultural moments, exclusive drops and experiences they can't get anywhere else," said Kevin Meiners, Head of Loyalty and Payments at Gap Inc. "For so many fashion lovers, Fashion Week is something they experience from afar. Encore gives our members a chance to be part of it. And as we build new partnerships, we'll continue unlocking even more unique experiences for our members. We're just getting started."

Encore is one of the largest membership programs in U.S. apparel retail, with nearly 40 million active members across Gap Inc.'s brands. The program combines traditional rewards and savings with early product access, exclusive drops, curated content and experiences, giving members more ways to use their points on what they love, from shopping their favorite brands to unlocking memorable experiences. New York Fashion Week is the latest example of how Encore is bringing Gap Inc.'s Fashiontainment platform to life for its customers.

The Encore credit card unlocks the program's All-Access tier, giving cardmembers priority access to select experiences and enhanced benefits. Encore Mastercard® cardmembers earn five times the points at Gap Inc. brands and three times the points on eligible retail apparel purchases elsewhere.

New York Fashion Week experiences will be available in limited quantities, with select cardmember experiences available through direct invitation. Members can explore the full lineup at encoremembership.com/nyfw and redeem experiences through the Encore Market on Old Navy, Gap, Banana Republic and Athleta apps and websites. Eligibility, availability and additional terms vary by experience.

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 worldwide through company-operated and franchise stores and e-commerce sites. Through Encore, its cross-brand membership program, Gap Inc. connects members across its portfolio to rewards, benefits and exclusive experiences. Since 1969, Gap Inc. has created products and experiences that shape culture while doing right by employees, communities and the planet. For more information, please visit www.gapinc.com.

SOURCE Gap Inc.

Key Takeaways Gap is expected to post lower Q2 revenues and earnings, with sales seen down 0.6% and EPS down 12.3% YoY.Old Navy's seasonal-category weakness and promotions are expected to weigh on Gap's Q2 sales and margins.Gap sees Q2 sales flat to down 1%, gross margin flat to down 50 bps and operating expense deleverage. The Gap, Inc. (GAP - Free Report) is expected to post year-over-year declines in both revenues and earnings when it reports second-quarter fiscal 2026 results on Aug. 27, after the closing bell. For revenues, the Zacks Consensus Estimate is pegged at $3.7 billion, indicating a 0.6% decline from the year-ago quarter’s figure.

The consensus estimate for the bottom line is pegged at 50 cents per share, indicating a 12.3% decline from the year-ago quarter’s figure. The consensus estimate for fiscal second-quarter earnings has been stable in the past 30 days.

The San Francisco, CA-based company has a trailing four-quarter earnings surprise of 2%, on average. In the last reported quarter, the company’s earnings delivered a negative earnings surprise of 2.6%.

Factors Likely to Impact Gap’s Q2 ResultsGap’s fiscal second-quarter performance is likely to have benefited from continued momentum at the Gap brand, supported by stronger product relevance and effective brand storytelling. The company has been leaning into trend-right assortments across denim, fleece, women’s apparel and kids and baby, while maintaining consistency in men’s. Collaborations and culturally relevant marketing have also helped Gap strengthen its connection with younger consumers without losing its broader multigenerational appeal. Management indicated that customer engagement remained healthy entering the quarter, suggesting that product innovation, clearer brand messaging and improving customer experiences may have continued to support demand.

Old Navy, however, is likely to have been a key drag on the company’s fiscal second-quarter sales performance. While core categories such as denim, active and kids and baby continued to resonate with shoppers, seasonal categories remained challenged. In particular, the women’s dress assortment did not deliver the right combination of fashion and value, while weakness was also seen in other seasonal offerings such as swim and shorts. Management responded with sharper price points and stronger customer messaging, and noted some improvement as these actions took hold. Nevertheless, the need to work through weaker seasonal merchandise likely weighed on conversion and increased promotional activity during the quarter.

Performance across Banana Republic and Athleta is also likely to have shaped the overall quarter. Banana Republic entered the period with improving consistency across men’s and women’s apparel, supported by stronger merchandising and storytelling around its modern-explorer positioning. Athleta, on the other hand, remained in a rebuilding phase. The brand continued clearing less productive legacy merchandise while gradually introducing a cleaner assortment designed to better reflect changing customer preferences in the active category. Although early customer response to selected new products was encouraging, management acknowledged that the transition would take time, making Athleta a likely headwind to consolidated sales during the second quarter.

For the second quarter of fiscal 2026, GAP expects net sales to be flat to down 1% year over year and gross margin to be flat to down 50 basis points, with Old Navy pressured by seasonal-category softness that management attributed primarily to execution in dresses and certain other seasonal assortments Operating expenses, as a percentage of sales, to deleverage about 110-120 basis points from 33.4% seen in the year-earlier quarter.

Profitability is likely to have reflected a mix of disciplined inventory management and continued cost pressures. Gap has remained focused on reducing discounting where demand is healthy and using data and technology to improve merchandising, allocation and inventory productivity. However, higher promotions needed to clear seasonal merchandise at Old Navy may have limited some of these benefits. Elevated fuel costs and the timing of investments in initiatives such as loyalty, beauty and accessories, technology and the company’s Fashiontainment platform could also have weighed on operating leverage. Thus, despite continued operational discipline and pockets of strong brand momentum, a softer sales mix and elevated investment spending may have pressured second-quarter earnings performance.

What the Zacks Model Unveils for GAPOur proven model does not conclusively predict an earnings beat for Gap this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Gap currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.

Valuation Picture of GAP StockGoing by the price/earnings ratio, the stock is currently trading at 8.09 on a forward 12-month basis, lower than 13.15 for the Retail - Apparel and Shoes industry. Also, it is trading lower than its median of 10.48.

The recent market movements show that Gap’s shares have lost 25.6% in the past six months compared with the industry's 16.3% decline.

Image Source: Zacks Investment Research

Stocks With the Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Abercrombie & Fitch Co. (ANF - Free Report) currently has an Earnings ESP of +4.49% and a Zacks Rank #3. The company is likely to register growth in the top line when it reports second-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for ANF’s quarterly EPS is pegged at $1.90, suggesting an 18.1% decline from the year-ago period’s actual. The consensus mark has been stable in the past 30 days.

 The consensus estimate for ANF’s quarterly revenues is pegged at $1.24 billion, which implies growth of 2.7% from the prior-year quarter’s actual. Abercrombie has a trailing four-quarter earnings surprise of 8.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Five Below Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.8% and a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for FIVE’s quarterly EPS is pegged at $1.28, suggesting 58% growth from the year-ago period’s actual. The consensus mark has been stable in the past 30 days.

The consensus estimate for FIVE’s quarterly revenues is pegged at $1.2 billion, which implies growth of 17.9% from the prior-year quarter’s actual. Five Below has a trailing four-quarter earnings surprise of 70.1%, on average.

Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.20% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pegged at $2.97 billion, which indicates a rise of 6.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Ulta Beauty’s upcoming quarter’s EPS is pegged at $6.17, which implies a 6.8% increase year over year. ULTA delivered a trailing four-quarter earnings surprise of roughly 10%, on average.

Gap's turnaround effort may be progressing at its namesake stores, but worries about weakness at Old Navy have one group of analysts downgrading the stock.

Gap Inc (NYSE:GPS) shares fell 3.8% on Wednesday after Jefferies downgraded the retailer to "Hold" from "Buy," citing growing concerns over softening trends at its Old Navy division.

The brokerage cut its price target to $23, rolling forward a roughly 9x price-to-earnings multiple on its fiscal 2028 earnings estimate of $2.56 per share.

“We are increasingly concerned about softer trends at Old Navy (data pointing to higher promos & weakening survey metrics),” analysts wrote.

“Importantly, 2Q represents the easiest comparison of the year, yet trends have lagged;;;and only become tougher in 2H.”

Gap guided to low-single-digit percentage comp growth for Old Navy in the quarter, while Jefferies is modeling a 4% decline.

Comparisons get tougher in the back half of the year, with Old Navy lapping a 6% comp gain in the third quarter and a 3% gain in the fourth, according to the note.

Morning Consult survey data cited by Jefferies showed purchase consideration for Old Navy fell 13% year-over-year in July and has weakened sequentially in recent months, while value perception has also deteriorated. The analysts said discounting has increased at the brand alongside several months of pressure on average selling prices. “We are concerned these trends could persist longer than anticipated,” they wrote.

Still, Jefferies said it remains encouraged by the turnaround underway at the Gap brand itself under CEO Richard Dickson, pointing to nine consecutive quarters of positive comps and strong sell-through from initiatives including the Gap x Hailey Bieber partnership. The firm also cited early customer engagement with Gap's beauty and accessories rollout, including fragrance products that have sold out online, though it said it no longer expects a low-single-digit percentage lift to 2027 sales and EBITDA from those initiatives.

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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Gap (GAP - Free Report) The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of May 2, 2026, Gap had around 3,500 store locations in 35 countries, of which 2,477 were company-operated.

GAP is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.18; value investors should take notice.

For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $2.34 per share. GAP boasts an average earnings surprise of +2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.

, /PRNewswire/ -- Gap Inc. (NYSE: GAP) will report its second quarter fiscal 2026 financial results by press release on Thursday, August 27, 2026, at approximately 1:15 p.m. Pacific Time.

In addition, the company will host a conference call to review its second quarter fiscal 2026 results on Thursday, August 27, 2026, beginning at approximately 2:00 p.m. Pacific Time.

A live webcast of the conference call will be available online at investors.gapinc.com. A replay of the webcast will be available at the same location.

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.

Posted by Defense World Staff on Jul 22nd, 2026

Bank of New York Mellon Corp reduced its stake in The Gap, Inc. (NYSE:GAP – Free Report) by 2.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 3,132,774 shares of the company’s stock after selling 63,160 shares during the period. Bank of New York Mellon Corp owned about 0.86% of GAP worth $75,813,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Cullen Frost Bankers Inc. purchased a new stake in shares of GAP during the fourth quarter valued at approximately $26,000. Plato Investment Management Ltd purchased a new position in shares of GAP in the fourth quarter worth $28,000. V Square Quantitative Management LLC purchased a new position in shares of GAP in the fourth quarter worth $31,000. EverSource Wealth Advisors LLC increased its stake in shares of GAP by 177.0% in the second quarter. EverSource Wealth Advisors LLC now owns 7,016 shares of the company’s stock worth $153,000 after buying an additional 4,483 shares during the period. Finally, Atlas Capital Advisors Inc. bought a new stake in GAP during the 4th quarter valued at $203,000. Institutional investors own 58.81% of the company’s stock.

GAP Stock Performance Shares of GAP stock opened at $19.56 on Wednesday. The stock has a fifty day moving average of $20.90 and a 200 day moving average of $24.21. The Gap, Inc. has a 52 week low of $18.11 and a 52 week high of $29.36. The firm has a market capitalization of $7.04 billion, a price-to-earnings ratio of 7.70, a PEG ratio of 1.17 and a beta of 2.04. The company has a quick ratio of 1.08, a current ratio of 1.81 and a debt-to-equity ratio of 0.41.

GAP (NYSE:GAP – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). GAP had a net margin of 6.25% and a return on equity of 21.13%. The company had revenue of $3.50 billion for the quarter, compared to analysts’ expectations of $3.52 billion. During the same period in the previous year, the firm posted $0.51 earnings per share. The firm’s revenue for the quarter was up 1.0% compared to the same quarter last year. GAP has set its FY 2026 guidance at 2.300-2.400 EPS. As a group, research analysts expect that The Gap, Inc. will post 2.34 earnings per share for the current year.

GAP Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Wednesday, July 8th will be paid a dividend of $0.175 per share. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.6%. GAP’s payout ratio is presently 27.56%.

Analysts Set New Price Targets Several equities research analysts have weighed in on the stock. TD Cowen dropped their price target on shares of GAP from $32.00 to $26.00 and set a “buy” rating for the company in a research report on Monday, May 18th. Evercore set a $20.00 price objective on shares of GAP and gave the company an “in-line” rating in a research report on Friday, May 29th. Weiss Ratings downgraded shares of GAP from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, July 7th. The Goldman Sachs Group dropped their target price on shares of GAP from $32.00 to $28.00 and set a “buy” rating for the company in a report on Friday, May 29th. Finally, Bank of America cut their target price on GAP from $29.00 to $26.00 and set a “neutral” rating on the stock in a research note on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $28.00.

Read Our Latest Report on GAP

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.

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On July 08, 2026, Gap Inc (GAP) shares fell 3.8%, bringing the current price to $18.35. The stock has been under pressure, with a 52-week range of $18.11 to $29

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Gap (GAP - Free Report) The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of May 2, 2026, Gap had around 3,500 store locations in 35 countries, of which 2,477 were company-operated.

GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.22; value investors should take notice.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.04 to $2.34 per share. GAP boasts an average earnings surprise of +2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. ("Gap" or the "Company") (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action]

On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.

On this news, Gap's stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Gap (GAP - Free Report) The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. It offers products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. Moreover, the company’s products include denim, tees, button-downs, khakis, and other trendy assortments as well as fitness and lifestyle products for training, sports, travel, yoga and other activities. Notably, the company offers its products through company-operated stores, franchise stores, websites, third-party arrangements, as well as catalogs. As of May 2, 2026, Gap had around 3,500 store locations in 35 countries, of which 2,477 were company-operated.

GAP is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.31; value investors should take notice.

For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $2.33 per share. GAP boasts an average earnings surprise of +2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, GAP should be on investors' short list.