Gap stock pops: Gap 'really leads with Old Navy,' analyst says
Gap (GAP) shares gain after the fashion retail company, which owns Banana Republic, Old Navy, and Athleta, reported mixed quarterly results and lifted its sales outlook. Morningstar equity analyst David Swartz joins Josh Lipton on Asking with a Trend to take a closer look at the results, including the company's stand-out brands. "The strongest brand that Gap has is certainly Old Navy. Old Navy generates most of Gap's sales and profit, and it does have an advantage in that it has low-priced merchandise. It does appeal to wide demographic groups, both [for]adults and children. I think it does really fit with the way that people shop today. So Gap really leads with Old Navy," Swartz says. He adds, "Athleta [is] also a pretty strong brand in a very strong category in women's athleisure. It's not quite as strong as some others like Lululemon (LULU), but there is a market for that, and Gap has built Athleta into a real competitor in that space." Watch the video above for more commentary from Swartz, including his view on Gap CEO Richard Dickson, the potential impact of new tariff policies, and more. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. This post was written by Naomi Buchanan.
