In This Article:
Gap Inc.'s (GAP) latest earnings report showed strong earnings as well as raised guidance, which few retailers have done this year. Explosive Options technical analyst Bob Lang joins Catalysts host Madison Mills to discuss Gap's latest earnings results, highlighting why he believes the Gap is one of the strongest retailers.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
We are watching Gap ahead of competitor Lululemon's results due out on Wednesday, on Thursday rather. Now Bob, I know that you say Gap is one of the strongest retailers right now, uh, you know, they've had a lot of rehabilitation of the brand under their new CEO here. What are you looking at for Gap?
Really like, uh, really like the gap here and, you know, they did something unusual a couple of weeks ago, Maddie. They produced really strong earnings for a retailer and raised guidance. So if you look across the landscape of retail, not very many companies. I mean, we're, we're looking at, uh, you know, some of the bigger names like, uh, Walmart and Costco, uh, and so forth, and Home Depot. None of these companies guided higher, but not only did the Gap beat, uh, their guidance, but they also guided higher for, not just the next quarter, for the whole entire year of 2025. That's very impressive and, um, I think the brands that they have like Banana Republic, Old Navy, you talked about that one, and also, Athleta, which competes directly with Lululemon. These are great brands that, uh, are gonna do extremely well in good times and in bad times. So I, I really believe that, uh, that the gap, uh, the best times are ahead of it right now. There's kind of, as far as the charts concerned, Maddie, trading in a range right now, longer term range. Gets below, stays above 20, gets above 25. Um, I think it's got some legs to run up towards 30, 35 bucks.
I have a fan theory that Gap is going to go the way of Abercrombie and Fitch. The other year, I think it was 2023, where they outperformed a video year to date on the, they had a huge year, and I feel like they're heading there. Also want to correct myself. I said the CEO was new. He's been in the position since August of 2023. So it feels like he's new because the brand is so fresh right now, but he's actually been at this work for a couple of years.
Yeah.
