Gap (GAP) stock gained on Thursday after the apparel company announced plans to expand into cosmetics. The company intends to test the waters later this year with offerings of beauty products at 150 Old Navy stores. This will include shop-in-shops at some locations, as well as employees dedicated to handling Old Navy’s beauty products.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
If all of this goes well, Gap plans to expand the beauty operations in phases. That will include a seed-to-scale plan and the launch of brand-right expressions across the portfolio. To go along with this, the company intends to expand its accessory offerings. Doing so will help make it a one-stop shop for fashion, with apparel, cosmetics, and accessories all under one roof.
Gap highlighted the growing beauty market as a major reason for its decision to add cosmetics to Old Navy stores. According to Euromonitor, the U.S. beauty sector is expected to surpass $100 billion in 2025. It makes sense that Gap would want a piece of this pie, especially as it benefits from strong core financials. This is reflected in its earnings reports, which have beaten or matched estimates in all eight of its most recent quarters.
Gap Stock Movement Today
Gap stock was up 3.01% on Thursday and has jumped 0.78% year-to-date. The company’s shares have also increased 6.01% over the past 12 months. While the company’s business has performed well, economic concerns, such as inflation, tariffs, and the trade war, have weighed on U.S. companies in 2025.
Is Gap Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Gap is Moderate Buy, based on six Buy and seven Hold ratings over the past three months. With that comes an average GAP stock price target of $25.15, representing a potential 7.94% upside for the shares.
