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

Gap brand momentum

• Gap marked its 11th consecutive quarter of growth and second double-digit growth quarter; denim ranking improved from No. 10 to No. 6, and kids and baby from No. 6 to No. 4.

• Traffic, AUR and units increased; more sales came at full price, supporting healthier margins.

• Product improvements and culturally relevant storytelling helped attract Gen Z while preserving existing customer appeal.

• GapBag and fragrances launched, with further product drops and marketing planned to build category momentum.

Old Navy reset

• The latest quarter marked Old Navy’s first comp decline in 11 quarters; H1 seasonal-category misses reflected dress assortment and inventory-mix issues.

• Product and assortment mix improved, while marketing shifted toward sharper price points, value and product-specific messages; denim, active, kids and baby are priorities for the back half.

• Cardi B-led denim and knit campaigns are resonating; Cardi’s cardigan sold over 500,000 units in a short period.

• Michael Francis is set to become Old Navy CEO on November 2, following a transition period working alongside Haio and leading customer initiatives.

• Beauty products are rolling into stores, and the Fanatics sports partnership has launched, with additional announcements expected.

Beauty and accessories

• Beauty and accessories moved from announced plans to launches; teams added category experts and developed brand-specific product strategies.

• Old Navy Beauty launched last month; Gap fragrances include Dream, currently the leading fragrance, while GapBag debuted with signature styles such as the Hoodie Tote and Five-Pocket Tote.

• The categories are in an early momentum-building phase, with limited near-term material impact; they are expected to support long-term growth and enhance margins.