The Gap Shares Rise 1.52% on Analyst Upgrades and Strong Sales but Tariff Woes and Athleta Struggles Loom as $590M Volume, 150th in Daily Ranking

On August 29, 2025, The Gap (GAP) traded with a volume of $0.59 billion, ranking 150th in the day’s market. The stock rose 1.52% amid mixed analyst activity and operational updates.

Positive momentum stemmed from JPMorgan Chase’s upgraded price target to $32 (implying ~45% upside) and Evercore ISI’s $25 target (suggesting ~13.5% upside), both retaining “overweight/outperform” ratings. The company reported Q2 earnings above estimates ($0.57 per share) and 1% comparable-store sales growth, driven by Old Navy, Gap, and Banana Republic. CEO Steve Fish highlighted a viral “Better in Denim” campaign generating 400 million views in three days, outperforming prior campaigns.

Offsetting pressures included a $150–175 million tariff headwind for FY2025, despite reaffirming 1–2% net-sales growth. Athleta’s weak performance led to a 10% post-earnings dip, as Q2 revenue fell short. Wells Fargo and Zacks Research downgraded the stock to “equal weight” and “strong sell,” respectively, citing margin risks and near-term challenges.

Recent backtesting indicates the stock’s 68% post-earnings win streak remains intact, though analysts caution tariffs and Athleta’s performance could weigh on long-term gains.