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The Gap’s 10% Comp Surge: Is The Brand Revival Finally Taking Hold?

The Gap, Inc. reported its first-quarter fiscal 2026 results with a continuation of positive comparable sales growth, registering a 2% increase and marking the ninth consecutive quarter of positive comps. Net sales rose modestly by 1% to $3.5 billion, driven by gains across most brands, though individual brand performance varied. The company expanded market share through product improvements, storytelling, and increased brand relevance, and exceeded its gross margin expectations despite some headwinds. Old Navy, the largest brand and the leading specialty apparel retailer in the U.S., posted a 1% increase in comparable sales, building on last year’s 3% growth. The brand continues to perform strongly in strategic categories such as activewear, denim, and kids and baby apparel, maintaining top rankings in denim and the active category.