Gap Inc. (GAP) reported a mixed performance in its third-quarter fiscal 2025 financial results. Athleta, the company’s activewear brand, saw a significant 11% decline in net sales year-over-year, with comparable sales matching the same drop as management works on a brand revamp. Conversely, Old Navy and Gap brands exhibited strong resilience, with Old Navy achieving a 6% increase in comparable sales and Gap reporting a 7% increase, marking its eighth consecutive quarter of sales growth. Banana Republic also contributed positively, with a 4% growth.
The three primary brands collectively drove Gap’s highest quarterly comparable sales growth in over four years, showcasing the company’s ability to mitigate Athleta’s challenges. Despite ongoing issues at Athleta, sustained performance at Old Navy and Gap suggests a potential for continued overall growth as the brand realignment progresses.
