By Teresa Rivas
On Black Friday I was fairly restrained -- for me anyway -- when it came to taking advantage of sales. But I did get a number of items from Gap, for the first time in years. Apparently I wasn't the only one.
Location analytics firm Placer.ai named Gap as one of the "surprise winners" from this year's Black Friday. According to their data, traffic to Gap stores was up 12.5% from 2024, and visits to all four of its brands -- Gap, Old Navy, Banana Republic and Athelta -- were up 6.4%. Traffic was up triple-digits compared with the first three weeks of November and the first three quarters of 2025.
That echoes what veteran retail analysis firm Telsey Advisory Group found, noting "solid traffic" at Gap Black Friday weekend.
Gap's stock could use the help. The shares have been struggling for years, and have never retaken their highs around the turn of the century. Consumers have increasingly shifted away from mall-based stalwarts, the rise of hybrid work has hurt its upscale Banana Republic stores, and its ill-fated collaboration with Kanye West didn't do much to juice its flagship brand.
Yet while Gap may never be able to reclaim its Y2K heyday, the shares are staging a comeback, up double-digits so far in 2025 -- although up more modestly since Barron's recommended them in early December 2024. And they could keep climbing.
The company has delivered much better-than-expected same-store sales growth three of the past four quarters, and although earnings per share growth has been uneven, Gap's quarterly EPS haven't missed analyst expectations in nearly three years.
Technical analysis also suggests Gap's run isn't done: The Institutional View author Andrew Addison recommended the shares just before Thanksgiving and tells Barron's that he's still bullish on them for a number of reasons, beyond just the "great technicals."
He cites the fact that "new CEO Richard Dickson has delivered a turnaround, resulting in an increase in same-store sales despite a challenging 'bricks-and-mortar' retail environment," as well as the fact that Gap has been outperforming its peer group and...the stock market (as compared to the S&P 500 Equal Weight Index)."
It only has to climb about 12% to cross $30, a level which "would launch its first bull market in almost 30 years," Addison notes.
Nor are the shares very pricey to bet on, changing hands at just 12 times next year's earnings -- and paying investors a 2.5% dividend for their patience.
Gap could see more growth beyond the holiday season. After a recent meeting with management, Jefferies analyst Corey Tarlowe thinks Gap's "strategy could be shifting from closures, primarily at Banana Republic, towards more selective openings and experiential concepts." He thinks the shares could trade to $30, thanks to the fact that "core categories like denim and active remain strong, while beauty and accessories represent underappreciated long-term upside for both sales and margin."
Of course, Gap isn't a sure thing. The stock has rallied in the past only to disappoint investors, fashion is a notoriously fickle industry, and the company hasn't seen much in the way of sales growth in recent years, making it a show-me story for many investors. Consensus calls for EPS to dip by a nickel, to $2.15, in the coming fiscal year, before growing mid-single-digits the following year.
Nonetheless, the company has made impressive strides, in terms of right-sizing its store fleet and having on-trend merchandise. Moreover, with stocks from Walmart to Macy's outperforming the broader market this year, Wall Street is warming up to the idea that even older retailers can compete and thrive in the era of e-commerce. Some things just never go out of style.
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December 04, 2025 01:48 ET (06:48 GMT)
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