Apparel Stocks Face Month-End Results, Market Cap Drops by 600 Billion in a Day

U.S. apparel retailer Gap Inc. (GAP) plunged 6.07% in yesterday’s trading on the New York Stock Exchange, closing at $21.95. Volume was about 7.03 million shares—heavier than usual—and the company’s market capitalization, roughly $8 billion (about KRW 11 trillion), lost some $460 million (about KRW 600 billion) in a single day.

Gap is scheduled to report its fiscal 2026 first-quarter results after the market close on May 28, and investors’ caution ahead of that event appears to be weighing on the stock. In its fourth-quarter fiscal 2025 results, released this spring, the company delivered modest revenue growth, set full-year 2026 revenue and EPS guidance slightly above market expectations, and raised its dividend by about 6%. However, its conservative near-term outlook has left investor sentiment on edge.

Founded in 1969, Gap Inc. is a U.S. specialty apparel retailer whose portfolio includes Gap, Old Navy, Banana Republic, and Athleta. The company operates large-format stores and e-commerce channels primarily in North America. In recent years, it has pursued profitability recovery through inventory adjustments, brand repositioning, and cost reductions. Meanwhile, the market’s interpretation of its cautious short-term guidance has contributed to heightened stock volatility.