Trump Aims to Reinforce Tariffs Following Court Loss: Implications for the Economy and Investors.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy GAP?
Source: Barron's
Market Reaction: Stocks experienced a rally on Friday following the Supreme Court's rejection of a key aspect of President Trump's trade policy.
Future Outlook: Despite the initial market relief, investors are advised to brace for upcoming economic uncertainties.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GAP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GAP
Wall Street analysts forecast GAP stock price to rise
15 Analyst Rating
12 Buy
3 Hold
0 Sell
Strong Buy
Current: 27.040
Low
25.00
Averages
31.07
High
41.00
Current: 27.040
Low
25.00
Averages
31.07
High
41.00
About GAP
The Gap, Inc. is a specialty apparel company in America. The Company offers apparel, accessories and personal care products for women, men, and children. Its Old Navy, Gap, Banana Republic, and Athleta brands offer clothing, accessories and lifestyle products for men, women, and children. It is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and third-party arrangements. Its omni-channel services, including buying online pick-up in-store, order-in-store, find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences, are tailored across its collection of brands. Gap includes adult apparel and accessories; GapKids, babyGap, Gap Maternity, GapBody, and GapFit collections. Banana Republic is a premium lifestyle retailer celebrating exploration and self-expression through timeless quality, versatile fabrics, and exceptionally made womenswear, menswear, and home designs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gokaldas Exports Sees Easing Earnings Pressure Amid Trade Deal
- Margin Improvement: Gokaldas Exports anticipates its core profit margins will rise to double digits from 9.7% in Q3 FY2026, primarily due to reduced tariff pressures from a recent trade deal with the U.S.
- Tariff Relief Impact: The new trade agreement lowers India's textile export tariffs from 50% to 18%, alleviating profit pressures that arose from increased tariffs, allowing the company to gradually restore profitability while maintaining client relationships.
- Market Dependency: Approximately 75% of Gokaldas's standalone revenue comes from the U.S., with major clients including Walmart, Gap, and JCPenney, highlighting the company's significant reliance on the U.S. market and its importance in the global supply chain.
- Production Capacity and Exports: The company produces around 90 million garments annually, with operational revenue reaching 38.64 billion Indian rupees (approximately $424.81 million) in FY2025, indicating its competitive position and growth potential in international markets.
See More
Gap Inc. Launches New Encore Membership Program for Enhanced Customer Loyalty
- Membership Innovation: Gap Inc. has launched the Encore membership program aimed at attracting nearly 40 million active members by offering early access, exclusive experiences, and simplified rewards, thereby enhancing customer loyalty and brand engagement.
- Credit Card Benefits Upgrade: The Encore credit card provides members with opportunities to earn 5x points at Gap Inc. brands and 3x points on apparel purchases elsewhere, marking a new standard for loyalty in fashion retail and further solidifying Gap Inc.'s market leadership.
- Diverse Brand Experiences: Encore members will enjoy a variety of benefits including limited-edition products, exclusive brand experiences, and cultural events, fostering deeper connections between brands and consumers while enhancing customer engagement and loyalty.
- Charitable Donation Mechanism: Members can donate reward points to selected charitable organizations through the Encore Market, reflecting Gap Inc.'s commitment to social responsibility while enhancing member engagement and brand affinity.
See More
Gap Inc. Announces Q1 FY2026 Dividend Increase
- Dividend Growth: Gap Inc. announced a Q1 FY2026 dividend of $0.175 per share, reflecting a 6% increase from Q4 FY2025, indicating ongoing financial stability and boosting investor confidence.
- Payment Schedule: The dividend will be payable on or after April 29, 2026, with a record date of April 8, 2026, ensuring timely returns for shareholders and strengthening the relationship between the company and its investors.
- Brand Influence: As the largest specialty apparel company in America, Gap Inc.'s brands, including Old Navy, Gap, Banana Republic, and Athleta, offer a diverse range of clothing and lifestyle products globally, enhancing its competitive edge in the market.
- Corporate Mission: Since 1969, Gap Inc. has been committed to creating culturally impactful products and experiences while prioritizing the well-being of employees, communities, and the environment, demonstrating its corporate social responsibility.
See More
Gap Launches Rebranded Loyalty Program Encore to Enhance Customer Engagement
- Loyalty Program Upgrade: Gap launched its rebranded loyalty program Encore on Tuesday, encompassing Old Navy, Gap, Banana Republic, and Athleta brands, aiming to transcend traditional points and discounts by blending fashion with entertainment and cultural experiences for nearly 40 million active members.
- Tiered Structure: The Encore program features three tiers—core, premier, and all access—with lower spending thresholds for higher tiers, added flexibility in point usage, extended return windows, and birthday bonuses, while automatically migrating existing members and their points into the new structure.
- Exclusive Experiences: Members will gain early access to select products and exclusive drops, plus access to brand experiences developed with partners like Disney, NBCUniversal, and AMC, along with curated content such as behind-the-scenes product stories and styling advice.
- Strategic Implications: CEO Richard Dickson emphasized that the Encore program aims to meet customer demand for brands that shape culture and tell compelling stories, thereby deepening customer relationships and creating long-term value for the company.
See More
Gap Inc. Launches Encore Membership Program to Enhance Customer Engagement
- Membership Innovation: Gap Inc. has launched the Encore membership program aimed at attracting nearly 40 million active members by offering early access, unique experiences, and a clear rewards mechanism, thereby enhancing customer loyalty and brand engagement.
- Credit Card Benefits Upgrade: The Encore credit card provides members with higher point earnings on purchases at Gap Inc. brands and other apparel, with 5x points at Gap Inc. brands and 3x points on eligible apparel purchases, further driving customer engagement in fashion retail.
- Diverse Brand Experiences: Encore members will enjoy exclusive access to brand events, collaborations, and cultural moments, strengthening the connection between brands and consumers while enhancing corporate social responsibility through reward donations to charitable organizations.
- Market Uniqueness: The Encore Market will offer unique member-only products and experiences, including limited-run items and signed pieces, ensuring members receive a distinctive shopping experience in fashion retail, thereby solidifying Gap Inc.'s leadership position in the market.
See More
Senate Democrats Push Tariff Refund Legislation Following Supreme Court Ruling
- Tariff Refund Legislation: Senate Democrats introduced a new bill on Monday mandating refunds for tariffs imposed during Trump's presidency, responding to the Supreme Court's 6-3 decision last Friday that struck down most of Trump's tariffs, with estimates suggesting the U.S. government could owe over $175 billion to importers, significantly impacting small businesses and manufacturers financially.
- Economic Impact Assessment: Democratic leader Ron Wyden stated that Trump's tariff policies have caused lasting damage to American families and small businesses, and the bill aims to quickly return funds to affected businesses, helping them alleviate the economic pressures caused by rising tariffs.
- Refund Processing Timeline: The bill requires Customs and Border Protection to process all tariff refunds within 180 days of enactment, prioritizing small businesses; however, Treasury Secretary Scott Bessent warned that the refund process could face significant logistical challenges, potentially taking years to complete.
- Political Context: Although House Democrats are also pushing for similar refund legislation, the path to passage remains unclear in a Republican-controlled Congress, especially with the upcoming midterm elections, as Democrats seek to leverage this issue to attract voter attention.
See More
Gokaldas Exports Sees Easing Earnings Pressure Amid Trade Deal
- Margin Improvement: Gokaldas Exports anticipates its core profit margins will rise to double digits from 9.7% in Q3 FY2026, primarily due to reduced tariff pressures from a recent trade deal with the U.S.
- Tariff Relief Impact: The new trade agreement lowers India's textile export tariffs from 50% to 18%, alleviating profit pressures that arose from increased tariffs, allowing the company to gradually restore profitability while maintaining client relationships.
- Market Dependency: Approximately 75% of Gokaldas's standalone revenue comes from the U.S., with major clients including Walmart, Gap, and JCPenney, highlighting the company's significant reliance on the U.S. market and its importance in the global supply chain.
- Production Capacity and Exports: The company produces around 90 million garments annually, with operational revenue reaching 38.64 billion Indian rupees (approximately $424.81 million) in FY2025, indicating its competitive position and growth potential in international markets.
See More
Gap Inc. Launches New Encore Membership Program for Enhanced Customer Loyalty
- Membership Innovation: Gap Inc. has launched the Encore membership program aimed at attracting nearly 40 million active members by offering early access, exclusive experiences, and simplified rewards, thereby enhancing customer loyalty and brand engagement.
- Credit Card Benefits Upgrade: The Encore credit card provides members with opportunities to earn 5x points at Gap Inc. brands and 3x points on apparel purchases elsewhere, marking a new standard for loyalty in fashion retail and further solidifying Gap Inc.'s market leadership.
- Diverse Brand Experiences: Encore members will enjoy a variety of benefits including limited-edition products, exclusive brand experiences, and cultural events, fostering deeper connections between brands and consumers while enhancing customer engagement and loyalty.
- Charitable Donation Mechanism: Members can donate reward points to selected charitable organizations through the Encore Market, reflecting Gap Inc.'s commitment to social responsibility while enhancing member engagement and brand affinity.
See More
Gap Inc. Announces Q1 FY2026 Dividend Increase
- Dividend Growth: Gap Inc. announced a Q1 FY2026 dividend of $0.175 per share, reflecting a 6% increase from Q4 FY2025, indicating ongoing financial stability and boosting investor confidence.
- Payment Schedule: The dividend will be payable on or after April 29, 2026, with a record date of April 8, 2026, ensuring timely returns for shareholders and strengthening the relationship between the company and its investors.
- Brand Influence: As the largest specialty apparel company in America, Gap Inc.'s brands, including Old Navy, Gap, Banana Republic, and Athleta, offer a diverse range of clothing and lifestyle products globally, enhancing its competitive edge in the market.
- Corporate Mission: Since 1969, Gap Inc. has been committed to creating culturally impactful products and experiences while prioritizing the well-being of employees, communities, and the environment, demonstrating its corporate social responsibility.
See More
Gap Launches Rebranded Loyalty Program Encore to Enhance Customer Engagement
- Loyalty Program Upgrade: Gap launched its rebranded loyalty program Encore on Tuesday, encompassing Old Navy, Gap, Banana Republic, and Athleta brands, aiming to transcend traditional points and discounts by blending fashion with entertainment and cultural experiences for nearly 40 million active members.
- Tiered Structure: The Encore program features three tiers—core, premier, and all access—with lower spending thresholds for higher tiers, added flexibility in point usage, extended return windows, and birthday bonuses, while automatically migrating existing members and their points into the new structure.
- Exclusive Experiences: Members will gain early access to select products and exclusive drops, plus access to brand experiences developed with partners like Disney, NBCUniversal, and AMC, along with curated content such as behind-the-scenes product stories and styling advice.
- Strategic Implications: CEO Richard Dickson emphasized that the Encore program aims to meet customer demand for brands that shape culture and tell compelling stories, thereby deepening customer relationships and creating long-term value for the company.
See More
Gap Inc. Launches Encore Membership Program to Enhance Customer Engagement
- Membership Innovation: Gap Inc. has launched the Encore membership program aimed at attracting nearly 40 million active members by offering early access, unique experiences, and a clear rewards mechanism, thereby enhancing customer loyalty and brand engagement.
- Credit Card Benefits Upgrade: The Encore credit card provides members with higher point earnings on purchases at Gap Inc. brands and other apparel, with 5x points at Gap Inc. brands and 3x points on eligible apparel purchases, further driving customer engagement in fashion retail.
- Diverse Brand Experiences: Encore members will enjoy exclusive access to brand events, collaborations, and cultural moments, strengthening the connection between brands and consumers while enhancing corporate social responsibility through reward donations to charitable organizations.
- Market Uniqueness: The Encore Market will offer unique member-only products and experiences, including limited-run items and signed pieces, ensuring members receive a distinctive shopping experience in fashion retail, thereby solidifying Gap Inc.'s leadership position in the market.
See More
Senate Democrats Push Tariff Refund Legislation Following Supreme Court Ruling
- Tariff Refund Legislation: Senate Democrats introduced a new bill on Monday mandating refunds for tariffs imposed during Trump's presidency, responding to the Supreme Court's 6-3 decision last Friday that struck down most of Trump's tariffs, with estimates suggesting the U.S. government could owe over $175 billion to importers, significantly impacting small businesses and manufacturers financially.
- Economic Impact Assessment: Democratic leader Ron Wyden stated that Trump's tariff policies have caused lasting damage to American families and small businesses, and the bill aims to quickly return funds to affected businesses, helping them alleviate the economic pressures caused by rising tariffs.
- Refund Processing Timeline: The bill requires Customs and Border Protection to process all tariff refunds within 180 days of enactment, prioritizing small businesses; however, Treasury Secretary Scott Bessent warned that the refund process could face significant logistical challenges, potentially taking years to complete.
- Political Context: Although House Democrats are also pushing for similar refund legislation, the path to passage remains unclear in a Republican-controlled Congress, especially with the upcoming midterm elections, as Democrats seek to leverage this issue to attract voter attention.
See More
