Why it looks like Hailey Bieber just did Gap investors a solid
Why it looks like Hailey Bieber just did Gap investors a solid
Brian SozziTue, July 21, 2026 at 1:13 PM UTC
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The magic of Hailey Bieber appears to have landed at Gap's (GAP) doorstep just as the retailer’s stock price could use a jump-start.
Quick analysis: Earlier this month, Gap said it teamed up with Bieber on a limited-edition denim capsule called the Hailey Jean, marking one of the retailer's highest-profile celebrity collaborations in years.
Inspired by Bieber's signature casual style and her longtime love of vintage Gap denim, the collection features versions of the brand's Extra Baggy and '90s Low Rise Loose jeans. The designs feature six custom washes, complete with subtle "1996" details honoring her birth year.
It appears to be a very successful launch.
"We visited Gap's Times Square location on the release date, and when we spoke with the sales associate at 3:30pm, she informed us that they were low on sizes, and what was on the floor was all that was left. What was clear was that customers came in to purchase the jeans, with some coming in only to shop the Hailey Jeans," Jefferies analyst Corey Tarlowe said in a note.
"We view the success of the collab as another encouraging data point in Gap's ongoing effort to restore brand authority and cultural relevance,” Tarlowe said. “The collection sold out shortly after launch and generated strong social engagement across platforms. While the financial impact is limited, we believe collab reinforces positive momentum within Gap's denim business and broader brand repositioning efforts."
Bieber — founder of the wildly popular Rhode cosmetics brand, now owned by e.l.f. Beauty (ELF) — has become one of the most sought-after partners in marketing. She combines celebrity status with a proven track record of building brands that resonate with consumers.
She has more than 58.1 million Instagram followers and 19.2 million TikTok followers, giving brands access to a combined audience of more than 77 million people.
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AlphaSpace check-in: The product win comes at an important time for Gap.
The stock plunged in late May as the company slashed its full-year sales outlook amid dress challenges at its Old Navy division in the first quarter. Those challenges persisted into the second quarter.
The miss on dresses overshadowed another standout performance for the namesake Gap division, which posted a 10% same-store sales increase, driven by interest in denim and fleece. Banana Republic also continued its turnaround, with a 2% same-store sales gain compared with an unchanged result a year earlier.
Gap stock is down 25% over the past three months compared to a 5.5% gain for the S&P 500 (^GSPC) as the Street remains cautious about the timeline of Old Navy’s sales recovery.
Yahoo Finance AlphaSpace data shows Gap's stock now trading at a forward P/E multiple of 8.1 times, one of the lowest levels in more than five years.
Bottom line: With Old Navy trying to course-correct on product stumbles, it's important that the Gap division continues to power the company in the near term. The success with the Bieber launch won't make or break Gap's quarter, but it's more of a halo win for the Gap division.
Brian Sozzi is Yahoo Finance's Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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