The Gap: Affordable Basics Are Winning The Day
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Gary Alexander32.86K FollowersFollow5ShareSavePlay(9min)CommentsSummaryThe Gap, Inc. is capitalizing on affordability trends, driving comp sales acceleration amid sector-wide consumer spending weakness.GAP's lowest-priced label, Old Navy, is leading market share gains against higher-priced competitors.Year-to-date, GAP shares have outperformed major peers like Lululemon and Nike, rising approximately 15%.I expect GAP's outperformance to persist into 2026, supported by its value-driven strategy. JHVEPhoto/iStock Editorial via Getty Images As we exit 2025, one of the key trends that has dominated headlines is the continued perception that life in the U.S. is becoming increasingly unaffordable. The fallout effects of this general consensus can be keenly feltThis article was written byGary Alexander32.86K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have a beneficial long position in the shares of GAP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.