Jim Cramer on Gap: “The Turnaround’s Not Playing Out as Well as We Had Hoped”
Key takeaways
- Jim Cramer on Gap: “The Turnaround’s Not Playing Out as Well as We Had Hoped” Syeda Seirut Javed Tue, June 2, 2026 at 12:43 AM GMT+7 2 min read GAP The Gap, Inc.
- Last night, the retailer reported a mixed quarter.
- It’s the largest division, and the company cut its full-year sales forecast even as they raised their earnings outlook.
Jim Cramer on Gap: “The Turnaround’s Not Playing Out as Well as We Had Hoped” Syeda Seirut Javed Tue, June 2, 2026 at 12:43 AM GMT+7 2 min read GAP The Gap, Inc. (NYSE:GAP) was among the stocks Jim Cramer was focused on, as he discussed Mad Money’s latest game plan for the week. Cramer showed mixed feelings about the stock, as he commented:
What… happened to the stock of GAP today? Last night, the retailer reported a mixed quarter. Gap brand’s doing well, but Old Navy did a little worse than anticipated, while Banana Republic and Athleta also missed expectations. The reason the stock plunged over 50% today, though, is that Gap gave soft revenue guidance for the current quarter because of weakness in the Old Navy division.
It’s the largest division, and the company cut its full-year sales forecast even as they raised their earnings outlook. Now, the stock is now back to where it was in late 2023, which was just a couple of months after CEO Richard Dickson took over and started to orchestrate a real turnaround. So what do we do now with the stock? At this point, it’s trading at less than 9 times the midpoint of this year’s earnings guidance, very solid dividend, good buyback. On the other hand, the turnaround’s not playing out as well as we had hoped.