Gap diversifies with cosmetics and accessories to revitalize its performance

Gap expands its business lines. The U.S. group has announced its expansion into the cosmetics and accessories sector with Gap and Old Navy, two of its main brands, an offer that will be available in more than 150 of the company’s points of sale by the end of November, after concluding its latest results with a flat sales and operating profit performance.

Old Navy’s offering will include skin, hair, nail and cosmetics products, as well as K-Beauty stock, with a price range around $25, which will go on sale at the end of November.Gap will offer beauty products, starting in the fragrance market next year, and Old Navy will offer a range of K-Beauty products in a price range of around $25.

The company, which owns Old Navy, Gap, Banana Republic and Athleta, may have worked with John Demsey, formerly CEO of Estée Lauder, in a strategic consulting role, industry sources have told BoF.

Gap puts sales at $7.188 billion, up 1.12% from the first half of 2024

Gap may have selected Maesa, the international company specializing in beauty brand production, to produce the Old Navy line, taking over the True Fragance signature license, in addition to continuing the production of Banana Republic fragrances. However, Maesa will not be involved in the next Gap line, which has already handed over the license to Give Back Beauty in 2024.

The company ended the period (closed Aug. 2) with flat sales and operating income, slowing the pace compared to the first quarter of the year, when it grew by more than 2% and increased its operating income by nearly 27%.At the end of the second quarter, sales at Gap, which has been led by Richard Dickson for the past two years, stood at $3.725 billion, in line with $3.72 billion in the same period of 2024.

For the year-to-date, Gap’s sales stood at 7.188 billion dollars, up 1.12% compared to the first half of 2024, with operating income up 10.84% to 552 million dollars and net income up 12.36% to 409 million dollars.