Gap, Inc. (NYSE:GAP) shares traded higher Thursday as the company revealed a bold push into beauty and accessories, aiming to build on its repositioning strategy and extend its reach beyond apparel.
The retailer said its latest initiatives reflect momentum from the past two years, when it strengthened its balance sheet, sharpened brand relevance, and unified its culture.
This foundation has opened the door for new growth avenues that reinforce Gap's long-term ambition of becoming a stronger and more diversified retail powerhouse.
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The U.S. beauty and personal care sector is projected to top $100 billion by 2025, according to Euromonitor. To test this opportunity, Old Navy will debut a curated range of products across 150 stores later this fall.
Select locations will feature dedicated shop-in-shops and Beauty Associates to enhance the customer experience.
By 2026, Gap plans to scale the business at Old Navy and explore portfolio-wide rollouts tailored to each brand's identity.
In tandem, Gap will invest in accessories, a category already delivering encouraging results.
Management sees accessories as a natural complement to apparel, reflecting how customers shop for complete looks.
Applying the same disciplined rollout approach as in beauty, the company aims to build a more meaningful presence in this category over the next several years.
These moves are part of Gap's broader effort to reinforce its place among U.S. retail leaders. The company expects to create new revenue streams while adapting to consumer demand shifts.
Price Action: GAP shares are trading higher by 5.25% to $23.75 at last check on Thursday.
According to Benzinga Pro, Gap gained over 5% in the past year. Aztlan Global Stock Selection DM SMID ETF (NYSE:AZTD) also offers exposure to the stock.
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