90s fashion retailer closed 350 stores, and it isn't enough

Tilly's (TLYS) reported $163.5M revenue, up 8.1% YoY, beating estimates and raising guidance. Its stock rose 18.1%. Lululemon (LULU) reported $2.42B revenue, down 4.3% YoY, missing estimates and guidance, with its stock falling 18.7%. Gap (GAP) reported $3.65B revenue, down 2% YoY, missing estimates but raising full-year EPS guidance, with its stock up 3.5%. Abercrombie & Fitch (ANF) reported $1.27B revenue, up 4.8% YoY, beating estimates and raising guidance, with its stock up 34.8%.

Unusual options activity highlighted institutional bets on Macy's (M), Gap (GAP), Occidental Petroleum (OXY), and Carnival (CCL). Macy's reported strong earnings, raising guidance. OXY saw significant call options activity amid higher oil prices. CCL and Royal Caribbean (RCL) options suggest bets on cruise industry volatility due to oil prices.

BMO Capital initiated coverage on Gap, Inc. (NYSE:GAP) with a Market Perform rating and a $23.00 price target, citing concerns about Old Navy's performance. The stock trades at $22.38. BMO expects valuation pressure until Old Navy shows improvement. Gap's Q2 earnings beat expectations, with revenue at $3.7 billion, and the company raised its full-year outlook. Analysts have mixed views, with price targets ranging from $21 to $42.

Gap, Inc. (NYSE:GAP) named Michael Francis as Old Navy's CEO, effective November 2. Q2 results showed Old Navy's net sales fell 4% YoY to $2.1B, with comparable sales down 4%, ending a 12-quarter streak. Gap's namesake brand saw 10% comparable sales growth. Shares jumped 14% post-earnings, with operating income doubling to $676M and net income to $501M. Old Navy's underperformance led to narrowed full-year guidance.

Gap Inc. (NYSE:GAP) reported Q2 revenue of $3.65B, missing estimates, but beat EPS estimates. Shares rose 12.9% post-earnings. CEO Dickson's turnaround efforts are debated. Old Navy, its largest brand, saw a 4% sales drop. The company raised FY2026 EPS guidance but cut full-year revenue guidance.

Gap Inc. reported a 2% decline in total sales but raised its full-year profit and earnings guidance. The Gap brand saw a 10% jump in comparable sales, while Old Navy and Athleta struggled. Management raised adjusted operating margin and EPS guidance, citing strong performance from the Gap and Banana Republic brands. The stock trades at a forward P/E of 8.29, with significant hedge fund ownership and short interest.