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Gap’s $600 Million Buyback — Can Brand Momentum Keep The Reset Moving?

Gap Inc. reported second-quarter fiscal 2026 net sales of $3.7 billion, down 2% year-over-year, while comparable sales declined 1%. Despite revenue pressure, particularly at Old Navy and Athleta, earnings per share exceeded expectations, supported by gross margin management and disciplined cost control. The Gap brand maintained momentum with comparable sales increasing 10%, marking the 11th consecutive quarter of positive comps. Growth was led by women’s, with solid performance in men’s, kids, and baby categories. Denim and fleece remained strong, supported by culturally relevant marketing and collaborations including Hailey Bieber. Store remodels and expansion into fragrances and accessories also continued. Banana Republic delivered 3% comparable sales growth, with strength across men’s and women’s categories. Elevated assortments and travel-inspired storytelling supported higher customer spending in upgraded stores. A new CEO has been appointed to build on recent progress.