1852 ET [Dow Jones]--Gap says problems with its Old Navy brand aren't related to customer weakness. The company recorded slower growth at Old Navy, saying its seasonal clothes got off to a worse-than-expected start. Executives tell analysts the weakness isn't related to customer confidence, however, because shoppers still seem strong across income cohorts and are buying non-seasonal items at a regular clip. Instead, management sees the problems as linked to not having the "right fashion and value equation." The team is working on now getting the right price and the right products for seasonal items, while leaning into denim and activewear, where demand is stronger. Gap shares fall 15%. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

May 28, 2026 18:54 ET (22:54 GMT)

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