Gap Seen Driving Growth With Beauty Expansion -- Market Talk

Dow Jones
03/07

1334 ET - Gap slides after missing Wall Street's 4Q EPS estimates and reporting weaker sales for its struggling Athleta brand. But Gap's entry into beauty should boost both its top and bottom lines, Jefferies analysts say in a note. The company is seeing encouraging early results from its beauty pilot at Old Navy, with management noting higher engagement and bigger purchases, the analysts say. The company also plans to reintroduce fragrances in 2026, according to the analysts. However, while the beauty offerings should help results over time, the analysts say they expect the Athleta headwinds to continue. Gap drops 13%.(kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

March 06, 2026 13:34 ET (18:34 GMT)

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