In this articleGAP your favorite stocksCREATE FREE ACCOUNTA sign hangs in a Gap Outlet store window in Chicago on May 29, 2025.Scott Olson | Getty ImagesGap on Thursday announced it is expanding into beauty starting with its Old Navy brand, a strategic shift by the apparel company.Its initial test will feature beauty and personal-care ducts at 150 Old Navy stores, as well as dedicated beauty associates and some shop-in-shops.
The company plans to scale the beauty next year.It was un when the company eventually plans to put beauty ducts in Gap brand stores.
The company said it plans to "launch brand-right expressions across the portfolio" next year."Gap Inc.
sees a and meaningful opportunity to expand into this category with plans for a phased launch, starting with an initial test-and-learn expression at Old Navy later this fall," the company said in a statement.The stock was trading roughly 5% higher Thursday.The beauty segment has ven to be one of the most resilient in retail in recent years despite high inflation and worries tariffs.
Gap cited Euromonitor data that said the beauty and personal-care market is one of the fastest-growing in the U.S., jected to exceed $100 billion this year.Even so, the success of beauty ducts has made it a more competitive space than ever.The company said it will also expand its accessories after seeing "strong customer reception" to its present ducts.The new move comes as Gap has experienced a resurgence over the past two years."This momentum is enabling Gap Inc.
to seize exciting opportunities for growth and innovation, helping ensure the company remains competitive and successful in the future," the statement said.Don’t miss these insights from CNBC What Nvidia's earnings mean for the stock market and AI tradeJosh Brown says if Apple announced a deal with Perplexity AI, the s would hit a recordChallenging Buffett: Buying wonderful companies at fair prices isn't more fitableBest Stocks: The value name with one of the best long-term charts Josh Brown has ever seen