Gap Inc (GAP) Goldman Sachs Global Consumer and Retail Conference summary

Brand momentum and cultural relevance

• Gap brand has become one of the fastest-growing and trending brands on TikTok, driven by a focused execution of culturally relevant storytelling and experiential marketing.

• Achieved 11 consecutive quarters of growth, with recent double-digit growth and significant improvements in denim and kids/baby category rankings.

• Attracting Generation Z while maintaining appeal to existing customers, with increased traffic, average unit retail, and full-price selling.

• Healthier margins and frequent collaborations with influencers and tastemakers are driving revenue and cultural relevance.

• Expansion in distribution and categories supports the long-term growth model and future brand proposition.

Old Navy performance and leadership transition

• Old Navy experienced its first comp decline in 11 quarters due to missed seasonal category trends, particularly in dresses and inventory mix.

• Product and assortment mix have been improved, with marketing rewired for sharper price points and value orientation.

• Denim, active, and kids/baby categories are areas of strength, with recent campaigns like Cardi B's driving strong engagement and sales.

• Over 500,000 units of Cardi's cardigan sold quickly, demonstrating the effectiveness of the new marketing approach.

• Michael Francis, with extensive retail and entertainment experience, will become CEO of Old Navy on November 2, expected to unlock the next chapter for the brand.

Expansion into beauty, accessories, and Fashiontainment

• Beauty and accessories initiatives have launched, with early momentum and strong consumer response, especially in checkout lanes.

• Industry experts have been recruited to ensure authenticity and strategic execution in these new categories.

• Iconic GapBag and other accessories are gaining attention, with plans for further product drops and marketing to build momentum.

• These categories are expected to enhance margins and provide incremental growth opportunities.

• Fashiontainment, blending fashion and entertainment, is being leveraged through music videos, partnerships, and content to drive brand virality and store traffic.