The Gap, Inc.

Gap shares jumped after the company named a retail industry veteran to head Old Navy and reported profit that beat estimates, offsetting a sales decline at the value chain and lower sales guidance. Meanwhile, Apple's Tim Cook handed over the CEO role to John Ternus on Tuesday, capping a tenure that cemented the company as an iconic global brand and made its stock one of the most reliable bets. Shein Global Holdings' long-awaited market debut comes at an awkward time, as the fast-fashion retailer's peak growth years are behind it, with tariffs, regulatory pressure, and intensifying competition making its next phase harder.

Gap has tapped former Coach designer Reed Krakoff to create a new line of handbags inspired by its five-pocket jeans and fleece hoodies, as part of a push to make accessories a more distinctive business. CEO Richard Dickson said accessories have never been done with distinction or conviction, but Krakoff, who was named executive director of accessories last year, is now tasked with replicating his success at Coach, where he turned handbags into fashion items and introduced the "C" logo. The new line includes a Five-Pocket Tote with denim details and a washable Hoodie Tote, available in stores and online starting September 8. Since Dickson took over in 2023, Gap shares have nearly doubled, outperforming the S&P 500 by 22 percentage points.

Gap is entering the roughly $15 billion accessories market with a handbag collection designed by Reed Krakoff, the architect of Coach's transformation into a global accessories powerhouse, with prices running from $29.95 to $148 and a limited-edition patchwork style at $498. The collection, available in stores and online beginning Sept. 8, includes the Five-Pocket Tote and the Hoodie Tote, which is made from neoprene-lined fleece and can be washed. Gap CEO Richard Dickson said on the Q2 2026 earnings call that accessories represent an "accelerator" alongside beauty and entertainment licensing, and Krakoff, who was named executive director of accessories for Gap Inc. last year, has done "an absolutely terrific job" translating Gap's brand ethos into the collection. The move pressures Tapestry, whose Coach brand Krakoff helped build, as Coach accounts for the majority of Tapestry's revenue; Tapestry shares were indicated down about 1.9% ahead of Tuesday's NYSE open, extending a 17.6% slide over the prior 30 days.

Gap Inc. raised its full-year profit and earnings guidance on August 27 even as total sales fell 2%, thanks to a standout performance from its namesake brand. The Gap brand posted a 10% jump in comparable sales, its eleventh straight quarter of growth, and climbed to the number four market share spot in kids and baby from number six. Banana Republic also delivered a fifth consecutive quarter of positive comps at 3% growth. As a result, the company lifted its adjusted operating margin outlook to 7.4% to 7.6% and adjusted earnings per share guidance to $2.35 to $2.45, backed by a 20 basis point gross margin gain and roughly $600 million in year-to-date buybacks. However, Old Navy comparable sales dropped 4% after misjudging its women's summer assortment, costing about 3 points of comps, and Athleta comparable sales fell 12% as its turnaround remains in early stages. Adjusted operating margin fell 70 basis points year over year, and adjusted earnings per share slipped to $0.52 from $0.57. Hedge fund ownership rose to 36 funds from 31, while short interest stands at 15.17% of the float, and the stock trades at a forward price-to-earnings ratio of 8.29.

Gap Inc. reported second-quarter net sales of $3.7 billion, down 2% year-over-year, with comparable sales down 1%, but the company raised its full-year adjusted operating margin and EPS outlook. Adjusted EPS came in at $0.52, down from $0.57 a year ago, while adjusted gross margin rose 20 basis points to 41.4%. The company now expects full-year net sales growth of 1% to 1.5%, adjusted operating margin of 7.4% to 7.6%, and adjusted EPS of $2.35 to $2.45, up 10% to 15% from last year. By brand, Gap delivered a 10% comparable sales increase, its 11th consecutive quarter of positive comps, while Banana Republic posted its fifth straight quarter of growth with comps up 3%. Old Navy's comparable sales fell 4%, and Athleta declined 12%. The company also announced that Michael Francis will become Old Navy's new Brand President and CEO on November 2, succeeding Haio Barbeito, and it repurchased over $600 million in shares year-to-date.

Baozun reported second-quarter 2026 revenue of RMB 2.7 billion, up 7% year-over-year, and raised its 2028 non-GAAP operating profit target from RMB 550 million to RMB 700 million. During the quarter, non-GAAP income from operations was RMB 74 million, compared to RMB 6 million in the same period last year, or RMB 59 million on a rebased basis excluding one-time write-off costs. The e-commerce segment grew 5% to RMB 2.3 billion, while brand management revenue rose 22% to RMB 486 million, driven by Gap's strong performance. The company also highlighted AI initiatives that have improved productivity and expressed confidence in achieving its revised long-term target.

Marvell Technology Inc.'s shares plunged 10.3% after the company provided weak guidance for third-quarter fiscal 2027 adjusted gross margin. In contrast, Workday Inc. climbed 5.8% after posting first-quarter fiscal 2027 adjusted earnings of $2.75 per share, surpassing the Zacks Consensus Estimate of $2.62 per share. The Gap Inc. jumped 12.9% after reporting second-quarter 2026 adjusted earnings of $0.52 per share, outpacing the Zacks Consensus Estimate of $0.50 per share. Meanwhile, MINISO Group Holding Ltd.'s shares tumbled 4.4% after reporting second-quarter 2026 adjusted earnings of $0.26 per share, lagging the Zacks Consensus Estimate of $0.31 per share.

Gap Inc. shares jumped 12.94 percent on Friday to close at $23.48 after the company named Michael Francis as the new president and CEO of its Old Navy brand, effective November 2, 2026, succeeding Haio Barbeito. Investors welcomed the move as Old Navy is Gap's largest revenue-generating brand. The rally also followed strong second-quarter results, with net income more than doubling to $501 million from $216 million a year earlier, despite a 2 percent dip in net sales to $3.65 billion. The company declared a dividend of $0.175 per share, payable on October 28 to shareholders of record as of October 7. Several analysts raised price targets, and hedge fund participation increased to 36 funds from 31, though committed capital fell 16 percent to $647.7 million.

Gap's shares surged nearly 15% in after-hours trading after the company reported second-quarter adjusted earnings of 52 cents per share, beating the Zacks Consensus Estimate of 50 cents, despite a 2% revenue decline to $3.65 billion. Comparable sales fell 1%, but gross margin strength drove profitability, with the Gap brand posting a 10% comparable-sales increase while Old Navy and Athleta declined 4% and 12%, respectively. Adjusted gross margin, excluding the tariff recovery benefit, was 41.4%, up 20 basis points year over year. The company updated its fiscal 2026 outlook, now expecting net sales growth of 1-1.5%, and raised its adjusted operating margin guidance to 7.4-7.6% and adjusted EPS to $2.35-$2.45. Gap also returned $262 million to shareholders during the quarter through buybacks and dividends.

PayPal shares plunged nearly 16% premarket after Bloomberg reported that buyout firm Advent and payment processor Stripe decided not to pursue a takeover, which would have been one of the largest leveraged buyouts. Meanwhile, Affirm jumped 13% after reporting $1.17 billion in revenue for its fiscal fourth quarter, beating the LSEG estimate of $1.11 billion, and issued first-quarter revenue guidance above estimates. Gap popped nearly 15% after announcing Michael Francis will become CEO of Old Navy starting Nov. 2, succeeding Haio Barbeito, and reported second-quarter adjusted earnings of 52 cents per share, topping the 48-cent consensus. Elastic N.V. surged over 17% after its full-year guidance exceeded expectations, with adjusted EPS forecast between $3.29 and $3.37 versus the $3.24 estimate. Marvell Technology dropped nearly 8% despite guiding current-quarter adjusted earnings to $1.10 per share plus or minus 5 cents, above the $1.07 estimate, but its gross margin guidance of 57.5% to 58.5% came in below the StreetAccount consensus of 58.5%. Rubrik fell over 5% after its non-GAAP gross margin of 81% missed the 81.7% estimate, despite beating on earnings and revenue. Autodesk declined nearly 4% after its third-quarter adjusted EPS guidance of $3.04 to $3.09 fell short of the $3.14 consensus.

U.S. stock futures slipped slightly Friday morning as investors sifted through corporate earnings and awaited remarks from Federal Reserve Chairman Kevin Warsh. Gap shares rose more than 13% in premarket trading after the retailer named Michael Francis as CEO of Old Navy, its largest brand, and raised its annual profit outlook following a quarterly beat. Marvell Technology fell over 7% despite raising its fiscal 2027 and 2028 revenue forecasts, as investors were disappointed the outlook didn't reflect an accelerated contribution from its AI chip partnership with Google. PayPal tumbled about 14% after Bloomberg reported that Stripe and Advent International abandoned their bid to acquire the payments giant at $60.50 per share, valuing it at over $53 billion. SentinelOne dropped over 4% on a weak profit outlook, while Elastic surged nearly 22% on strong results and a better-than-expected full-year forecast.

In extended trading, Gap shares jumped about 7% after the company announced Michael Francis will become CEO of Old Navy starting Nov. 2, succeeding Haio Barbeito, and reported second-quarter adjusted earnings of 52 cents per share, beating the LSEG consensus of 48 cents. Marvell Technology was marginally lower despite beating expectations with adjusted earnings of 94 cents per share on $2.74 billion in revenue, versus the anticipated 93 cents and $2.71 billion. Workday dropped 5.7% after its current-quarter subscription revenue outlook only matched analyst expectations, though it surpassed estimates on both top and bottom lines for the second quarter. Rubrik tumbled 10% despite beating analyst expectations for the second quarter and hiking its guidance, reporting adjusted earnings of 20 cents per share on $427 million in revenue, versus the expected 4 cents and $396 million. Autodesk slid 6% after its earnings projections disappointed, with third-quarter adjusted earnings guidance of $3.04 to $3.09 per share below the $3.14 consensus, and full-year guidance of $12.52 to $12.60 per share versus the $12.60 anticipated. Elastic N.V. surged 15% after full-year guidance topped expectations, with adjusted earnings of $3.29 to $3.37 per share on revenue of $1.998 billion to $2.010 billion, beating the $3.24 and $1.99 billion estimates. SentinelOne shed almost 7% after issuing a weak current-quarter and full-year earnings outlook, overshadowing a stronger-than-expected second-quarter report.

Gap Inc. announced that its board of directors has authorized a third quarter fiscal year 2026 dividend of $0.175 per share. The dividend is payable on or after October 28, 2026, to shareholders of record at the close of business on October 7, 2026. Gap Inc. is the largest specialty apparel company in America, with brands including Old Navy, Gap, Banana Republic, and Athleta.

Gap Inc. has entered a partnership with Dubai-based Chalhoub Group to launch Gap, Banana Republic, and Athleta brands in the Middle East through phased online rollouts in the UAE, Saudi Arabia, and Kuwait in 2026, followed by store openings in 2027. The move extends Gap's international footprint with a digitally led omnichannel experience in a competitive region. Gap also updated its full-year guidance, projecting 1% to 2% net sales growth and earnings per share of US$2.83 to US$2.93. The partnership adds an international growth angle but does not alter the near-term focus on Athleta's execution and maintaining sales momentum without heavy discounting.

Gap announced a limited edition denim capsule collection in partnership with Hailey Bieber. The collection draws inspiration from 1990s fashion and focuses on relaxed denim silhouettes, aiming to connect the brand with younger consumers through celebrity influence and retro styling. The collaboration comes as Gap leans into its core identity in denim and casual wear, aligning with consumer interest in comfort and nostalgia-driven fashion. Investors will watch sell-through rates, social media traction, and follow-up launches to gauge whether the capsule translates into sustained customer engagement beyond the initial drop.

Gap has unveiled a major AI-driven initiative to modernize its marketing operations and enhance customer engagement across its brand portfolio. The company is collaborating with Google Cloud to build a unified, AI-ready data foundation that integrates customer and product intelligence, supporting faster personalization and continuous optimization. Gap is also working with Publicis Sapient to create a consumer-focused operating model powered by Google Cloud technologies including Agent Studio, Agent Engine, Gemini models, and image and video generation tools like Nano Banana and Veo. Additionally, a partnership with Zeta Global will deploy an AI-powered marketing stack centered on the Athena intelligence platform to coordinate audience targeting, creative development, and campaign activation. The initiative aims to deliver highly personalized customer experiences, strengthen owned marketing channels, and improve retention through a more agile and scalable growth platform.

Gap Inc. CEO Richard Dickson said the company is shifting from selling products back to storytelling, focusing on individuality, originality, and inclusiveness. Speaking at the 2026 Cannes Lions International Festival of Creativity, Dickson highlighted recent collaborations with artists including Tyla, Troye Sivan, Jungle, and Young Miko as part of a strategy blending content, commerce, and elevated product. He described the approach as driving a cultural conversation and creating a flywheel effect, while acknowledging the complexity of executing it across a global supply chain and thousands of stores.

Gap Inc. delivered its ninth consecutive quarter of positive comparable sales growth in the first quarter of fiscal 2026, signaling that its multiyear turnaround strategy continues to gain traction. The namesake Gap brand was the standout performer, with comparable sales rising 10% on top of a 5% increase a year ago, while net sales climbed 10% year over year to $796 million. Management highlighted strength across women's and men's apparel, a return to growth in kids and baby, and denim as a key market-share driver, alongside a third straight quarter of reduced discounting. The company expects the Gap brand to deliver high-single-digit comparable sales growth for the full fiscal year, supported by denim, expanded categories, store remodels, and the relaunch of its fragrance business. Shares of Gap have lost 19.8% over the past six months, underperforming the industry's 5.3% decline, and the stock trades at a forward price-to-earnings ratio of 8.68 times, compared with the industry average of 15.38 times.

Cascale's Manufacturer Climate Action Program has validated 52 science-aligned targets across 85 manufacturer groups in 19 countries, representing more than 1.6 million metric tons of CO2e reduction potential. The program, detailed in the MCAP Annual Impact Report 2025, engaged eight sponsoring brands including Gap Inc, New Balance, and PUMA across 446 participating facilities. In addition to the validated targets, 33 climate risk assessments were completed and 43 decarbonization plans are currently in development. All 52 graduates from the first two cohorts completed the 18-month program with a validated science-aligned target, achieving a 100 percent validation rate. Cascale will launch two new MCAP cohorts this year and is developing post-MCAP programming to extend manufacturer-brand partnerships.