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The Gap (GAP) Announces Strategic Expansion into Beauty and Accessories

The Gap, Inc. (NYSE:GAP) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 4, The Gap, Inc. (NYSE:GAP) announced its strategic expansion into beauty and accessories, reinforcing its commitment to becoming the high-performing house of iconic American brands. According to the company, the beauty and personal care market remains one of the fastest-growing and most resilient retail categories in the US. The Gap, Inc. (NYSE:GAP) expects a clear and meaningful opportunity to expand in this category, given its plans for the phased launch, starting with an initial test-and-learn expression at Old Navy later in the fall.

In 2026, The Gap, Inc. (NYSE:GAP) targets to seed to scale its Old Navy beauty business and launch brand-right expressions throughout the portfolio. In Q2 2025, the company overdelivered on profit expectations and achieved its topline goals. It saw net sales of $3.7 billion, with net income coming at $216 million and diluted EPS at $0.57. For FY 2025, The Gap, Inc. (NYSE:GAP) expects net sales growth of 1% – 2%.

While we acknowledge the potential of GAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GAP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.

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  • 140 Metas
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  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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