(Reuters) -Gap said on Thursday it would expand into the fast-growing beauty and personal care segment this fall season, including some sold under the Old Navy brand.
The move by the Banana Republic parent marks a shift in strategy to diversify revenue streams beyond its core apparel business at a time of tariff costs and muted demand.
The company’s shares were up 2.4% in early trading following the announcement.
Gap plans a phased rollout of its beauty and personal care assortment, starting with a test-and-learn phase at 150 Old Navy stores, it said.
Items will range from skincare and makeup to hair products and nail polish, with most items priced under $25, according to a Wall Street Journal report.
The Gap-branded stores will offer beauty products in 2026, the company said, adding that it also aims to expand its accessories business.
Gap last month reported comparable sales below estimates, hurt by a slowdown in discretionary spending, and warned of tariffs to weigh on its margins.
(Reporting by Savyata Mishra in Bengaluru; Editing by Shreya Biswas)
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