The Gap, a staple of American casual fashion, has undergone significant changes due to shifting trends and e-commerce. The company closed 80% of its Gap stores to focus on brands like Old Navy. Despite past struggles, Gap is now experiencing a promising revival in the retail market.

Since its inception in 1969, Gap has evolved its product line to cater to different age groups and income levels. Former CEO Mickey Drexler expanded the company’s success by launching popular brands like Old Navy and Banana Republic. However, Gap faced challenges after Drexler’s departure, leading to store closures and declining market share.

The embrace of e-commerce and the decline of indoor malls have further impacted Gap’s retail strategy. The company’s recent focus on Old Navy has paid off, with the brand becoming a leading apparel retailer, especially for back-to-school shopping. Gap’s overall performance has shown positive growth in comparable store sales across its different brands.

Despite challenges with Athleta and potential headwinds in the apparel market, Gap remains financially stable. The company’s profit per share and cash reserves have increased, indicating a solid foundation for future growth. Gap’s strategic shift towards Old Navy and other successful brands positions it well for continued success in the retail industry.

Read more at Yahoo Finance: Beloved retailer makes comeback after closing 100s of stores