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Gap Inc’s 8 Straight Positive Comps Show Momentum But Athleta Decline Tests The Story

In its latest financial results, The Gap Inc. demonstrated a mixed performance for the fourth quarter of fiscal 2025. The company reported a continuation of positive sales momentum, achieving an overall 3% increase in comparable sales for the quarter. This growth marked their eighth consecutive quarter of positive comps, underscoring a robust trajectory for their core business segments. However, while Gap Inc. showcased consistency in certain areas, challenges remain that temper the overall optimism. For the full fiscal year, Gap Inc. posted a 2% increase in net sales, reaching the high end of their outlook. This growth was supported by a 3% rise in comparable sales across their primary brands: Old Navy, Gap, and Banana Republic, each reporting consecutive years of positive sales performance. A notable highlight for the company was the achievement of one of their highest gross margins over the past 25 years.