One of America's largest clothing companies, headquartered in San Francisco. Gap was founded in the 1960s by Don and Doris Fisher, who opened a store selling Levi's jeans and records. The Fisher family still owns a big stake in the business. The company also owns Old Navy (cut-price), Banana Republic (premium) and Athleta (athleisure).
Under Mickey Drexler, who became chief executive in 1995, Gap went global and added new brands. Its market capitalisation peaked at $67bn in 1999. From there it spiralled into irrelevance, cycling through six chief executives between Drexler's departure in 2002 and the arrival of Richard Dickson.
Dickson took over as chief executive around 2023. He was previously the second-in-command at Mattel, where he oversaw the hit "Barbie" film and helped revive the brand. By March 2026 Gap had reported eight consecutive quarters of growth in same-store sales; its share price was up by over 125% since Dickson took the helm.
Dickson has refurbished stores (footfall has risen in five of the past six months) and overhauled e-commerce. Online shoppers now account for 40% of sales, up from 30% before the pandemic. Gap's average selling price has risen, suggesting shoppers are no longer simply hunting for bargains.
The company has sped up production by buying fabric early while delaying decisions on dyeing and cutting. Thanks to automation, some 80% of products now move through Gap warehouses without touching human hands. At Gap's namesake label, collaborations with brands like Cult Gaia and Dôen have lured in well-heeled customers.
Old Navy has struck licensing deals with Marvel and Formula One. In January 2026 Gap hired a chief entertainment officer from Paramount and announced the opening of an office on Sunset Boulevard in Los Angeles.
Lululemon makes eight times the sales of Athleta, which never reached equivalent scale and is now losing business to athleisure upstarts such as Vuori and Alo. Old Navy faces stiff competition from discounters like Nordstrom Rack. UBS sees a Gap-shaped opening in the market for $25–60 handbags.
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