The Gap Inc

GAP

Market cap $9.83B

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MINNEAPOLIS--(BUSINESS WIRE)--Inspectorio today announced that Gap Inc. and its family of brands will enable its global supply chain with Inspectorio's AI platform.

Gap (NYSE: GAP) and Urban Outfitters (NASDAQ: URBN) stocks have both pulled back from recent highs, but only one deserves a retirement investor's capital right now.

As the retail industry figures out how to put artificial intelligence to use, clothing chains like Abercrombie & Fitch, Gap and TJX could be further along than their rivals in adopting the technology, UBS analysts said Monday.

Gap Inc. remains a buy despite the recent 10% share price decline and Q4 momentum break. GAP's core Gap and Old Navy brands are delivering positive comp sales, leveraging value-oriented consumer demand in a tough macro. Operational tightening, including store closures and SKU rationalization, signals a focus on profitability over growth at all costs.

GAP strengthens full-price selling and AUR gains, boosting merchandise margins as tighter inventory and stronger demand reshape its pricing power outlook.

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The closure of the Strait of Hormuz creates a broad supply chain shock for companies reliant on Asian manufacturing. Apparel-heavy retailers like Carter's, Oxford Industries, Kontoor Brands, and Gap Inc. already face margin pressure due to existing tariffs.

Gap has reportedly launched an agentic commerce partnership with Google's Gemini. This collaboration will let shoppers check out directly from Google's artificial intelligence (AI) platform, CNBC reported Tuesday (March 24).

Shoppers will soon be able to buy products from Gap's house of brands directly within Google's Gemini, making Gap the first major fashion company to offer instant checkout within the AI platform. Gap's partnership with Gemini and its gains in customer-facing AI tools give it a competitive edge at a time when winning in specialty retail is harder than ever.