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Gap – back in fashion and back in your portfolio?

TikTok teens are reviving a fashion brand that only months ago looked as though it was in terminal decline
October 7, 2021
  • After years of diminishing profits, Gap is reconnecting with young consumers
  • Recent strong performance by Gap's budget and sportswear labels also bodes well 
Tip style
Speculative
Risk rating
Medium
Timescale
Long Term
Bull points
  • Riding the Y2K fashion revival
  • Persistently low rating
  • Smaller labels discarded
Bear points
  • Squeeze on mid-priced clothing
  • Balance sheet much weakened

Once upon a time, kids would have dreaded having to wear their parents’ hand-me-downs. Today, mum and dad’s old threads are the hottest thing in fashion.

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