11 Best Fashion Stocks To Buy Now

9. The Gap, Inc (NYSE:GAP)

Gap (NYSE:GAP) is a specialty apparel company that offers apparel, accessories, and personal care products for women, men, and children under a portfolio of brands, including Gap, Old Navy, Banana Republic, and Athleta. This omnichannel retailer sells its merchandise to customers both online and in-store through corporate-operated and franchise stores, websites, and third-party arrangements. The company offers enhanced mobile-enabled experiences to streamline online shopping for its customers across its brand collection. Gap (NYSE:GAP) offers adult apparel and accessories, GapFit, Gap Maternity, GapBody, and babyGap collections. In contrast, Banana Republic is a premium lifestyle retailer that offers versatile and high-quality womenswear, menswear, and home design.

Gap’s (NYSE:GAP) recent Q2 2024 quarter delivered strong results, exceeding analyst expectations. It gained market share for the sixth consecutive quarter, giving it a stronger position across key metrics such as net sales, cash position, and margins. It is undertaking continuous initiatives to reinvigorate its brand portfolio and unlock the company’s full potential, which highlights the solid profitability model it is running on.

Net sales increased 5% in Q2, with comps growing by 3%. The company’s primary focus is continuing this profitability trajectory by building stronger brand identities through trend-right products, increasing cultural relevance, and engaging in an engaging omnichannel experience.

To do so, it has launched several campaigns, including the Get Loose campaign featuring Troy Sevan and Dance Company CDK. This campaign solidified Gap’s (NYSE:GAP) standing as the ultimate destination for the baggy and oversized trend, giving it a competitive edge. It also built on momentum and share gains in the Kids segment, launching one of its strongest back-to-school campaigns by adopting a new media mix model and boosting kid demand via mom-approved messaging. Such collaborations continually amplify the company’s market standing, setting it up for long-term success.

Gap (NYSE:GAP) began working with Omnicom Group Inc. (NYSE:OMC), its new media partner, in Q3 to modernize its capabilities. It is shifting from a promotional media-focused company focused on performance to a full-funnel strategy to increase the effectiveness of its marketing spend. It prioritizes leveraging data and optimization to a greater extent and implementing best execution practices to become more consumer-led. Although the initiative is in its early stages, it is expected to significantly improve the economics of its marketing spend and alter its brand standing.