Gap is expanding into beauty, starting with its Old Navy brand. The initial test will include beauty and personal-care products at 150 Old Navy stores, with plans to scale next year. The company sees a clear opportunity in the beauty market, citing Euromonitor data projecting it to exceed $100 billion this year.

The stock closed 5% higher after the announcement. Gap also plans to expand its accessories business following strong customer reception. This move comes as the company has experienced a resurgence over the past two years, enabling growth and innovation for the future.

Read more at CNBC: Gap to add beauty products at Old Navy stores