Jim Cramer on The Gap: "It Looks Like a Real Turnaround Story"

The Gap, Inc. (NYSE:GAP) is one of the stocks Jim Cramer talked about. Cramer highlighted the company’s latest quarter and the following stock price action, as he remarked:

Alright, what the heck has happened to the stock of Gap after hours? It looks like a real turnaround story, and then it reported somewhat of an imperfect quarter after the close, with in-line revenue, softer than expected same-store sales at one of the divisions, small earnings miss, and yet the stock gets crushed after hours. I don’t get this. It didn’t help, though, that the full-year and first quarter forecast came in a little light, but maybe they’re just being conservative.

The Gap, Inc. (NYSE:GAP) sells apparel, accessories, and personal care items for men, women, and children. The company’s brands include Old Navy, Gap, Banana Republic, and Athleta. Furthermore, Cramer discussed the stock during the November 20, 2025, episode, as he commented:

This is a tough environment for retailers, I mentioned earlier, but great merchants won’t let that stop them from putting up phenomenal numbers. Take Gap Inc., which has been taking some time to turn itself around under CEO Richard Dickson. After the close, though, Gap reported a great quarter. This was a 3-cent earnings beat off of 59-cent basis with a higher-than-expected revenue, 5% same-store sales growth, analysts were only looking for 3.1%. At the same time, management raised their full-year forecast for both revenue growth and operating margin. And that’s why the stock’s flying in after-hours trading.

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