Gap Seen Driving Growth With Beauty Expansion -- Market Talk

Dow Jones
Mar 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)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10