This Clothing Chain Feels Good About the Holiday Season. Its Stock Is Rising.

By

Published November 21, 2025

11:20 AM EST

A sign outside a Gap store in New York City. — Gap feels good about its positioning for the holiday season.
Erik McGregor / LightRocket via Getty Images

Key Takeaways

Gap posted better-than-expected results as sales at its namesake stores led the gains. Comparable store sales increased 5%.
Gap also raised its outlook as it sees a strong start to the key holiday shopping season.

Shares of Gap took off after the clothing retailer exceeded earnings and revenue estimates and boosted its guidance on strong demand at its namesake locations.

The company, which also operates the Banana Republic, Old Navy, and Athleta chains, reported third quarter fiscal 2025 adjusted earnings per share of $0.62, with revenue up 3% to $3.94 billion. Analysts surveyed by Visible Alpha were looking for $0.58 and $3.91 billion, respectively.

Why This Matters to Investors

Gap's enthusiasm about its positioning for the holiday season may give investors looking for clues about consumer health some optimism, with the company shifting its end-of-year sales outlook to reflect more confidence.

The stock was recently up some 5% as broader markets slipped on the last trading day of the week. Read Investopedia's full daily markets roundup here.

Gap's (GAP) overall comparable store sales increased 5%. They rose 7% at Gap, 6% at Old Navy, and 4% at Banana Republic. Comparable sales slumped 11% at Athleta.

Related Education

Understanding Same-Store Sales: Key Metrics for Retail Success

Fast Fashion's Impact on Retail Manufacturing and the Environment

The “strength of our third quarter and quarter-to-date performance positions us well for the holiday selling season," said CEO Richard Dixon. The company now sees fiscal 2025 sales increasing 1.7% to 2%, up from its previous estimate of 1% to 2%, and expects its operating margin to grow approximately 7.2%, above its previously issued range.

The news lifted Gap shares into positive territory for the year, offering investors a measure of optimism after an up-and-down 2025.

Do you have a news tip for Investopedia reporters? Please email us at

[email protected]

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Gap. "Gap Inc. Reports Third Quarter Fiscal 2025 Results, Raises Full Year Outlook for Operating Margin."

Take the Next Step to Invest

The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.

Key Takeaways

Why This Matters to Investors

Related Education

Related Articles