Gap's Brand Momentum Continues to Grow: What's Next for 2026?

Gap Inc.'s turnaround strategy is gaining traction, driven by the Gap brand's resurgence. Stronger product assortments, clear messaging, and a modern brand identity have attracted more customers and supported full-price sales. While Banana Republic is improving, Athleta faces challenges and its recovery will take time. Consistent execution across the brand portfolio is critical for future growth. The company is heading into 2026 with a more balanced foundation, with shares up 26.4% in the past six months and a forward P/E ratio of 11.50X.