Gap partners with Walmart to launch its first home collection

Dow Jones2021-05-28

Gap is scheduled to report first-quarter earnings after the closing bell on Thursday

Walmart Inc. and Gap Inc. announced a multi-year partnership early Thursday that will bring Gap's first home collection to the retail giant's customers.

Gap Home products will be available starting June 24 on Walmart's $(WMT)$ e-commerce site, with the most popular items heading to stores "at some point," according to a Walmart spokesperson.

This is the first partnership between the two companies.

The collection, created in partnership between Gap $(GPS)$ and the licensing agency IMG, will have more than 400 products, including bedding, bath items and home decor. Merchandise will be priced from $15.88 for a denim pillow to $64.98 for a reversible king-sized comforter set.

Gap announced in May 2020 that it had partnered with IMG to expand into new categories like baby care, furniture and textiles.

Read:'Pretty much everyone has them on sale': The nationwide obsession with buying face masks is over

Seasonal and special collections will launch throughout the year.

Gap has made a number of announcements in an effort to focus on its core brands and spark growth, including the sale of the Intermix boutique chain and the Janie and Jack kids brand.

Gap has also paired up with a number of big names recently, including gymnast Simone Biles, who left Nike Inc. $(NKE)$ to pair up with Gap's growing Athleta brand with Gap during the first half of this year.

Gap was upgraded to neutral from underperform at Credit Suisse last week as the back-to-school season, the Kanye collaboration and other factors bode well for the retailer.

And:Gap will get a near-term boost from back-to-school, tax credits and Kanye, says Credit Suisse

"Over the past few years, we've focused on expanding our home assortment to bring high-quality, stylish home goods and decor to our customers at an unbelievable value," said Anthony Soohoo, executive vice president of Walmart's home division, in a statement.

Also:Urban Outfitters soars after fewer promotions drive record earnings

Don't miss: Walmart may have lost grocery share during COVID, but it's well positioned to get it back

Gap stock has skyrocketed 74.1% for the year to date. Walmart stock is down 1.7% for the period. The Dow Jones Industrial Average has gained 12.6% in 2021 so far.

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