Old Navy launches into a new category with the launch of its intimate collection. Old Navy says that underwear was the most sought after merchandise on Old Navy’s website that the company was not yet selling. Priced from $ 4.99 to $ 24.99, the collection includes bras, bralettes, and underwear.
Old Navy is part of Gap Inc.’s portfolio of GPS brands + 0.60%. The Gap, which is undergoing a sea change, is poised to benefit from a rebound in clothing spending after a year in which sales of clothing and accessories suffered due to COVID-19, according to analysts. See: Gap Prepared for a Post-COVID Clothing Comeback, Sells Janie and Jack Kids Line Old Navy has been the featured brand in the Gap lineup, with Athleta growing up and the namesake and Banana Republic facing challenges. “Old Navy appears to be very well positioned for market share gains this year, Athleta has a significant track for continued growth and the Gap brand is showing greenshoots in its brand health initiatives,” Wells Fargo analysts wrote in a note from March after meeting with Gap. executives. Wells Fargo rates Gap shares as overweight with a price target of $ 40. Gap shares have rallied 52.2% in the last three months and soared nearly 432% over the past year. The benchmark S&P 500 SPX index, + 1.47% has risen almost 64% in the last 12 months. Women’s underwear is a crowded category, with a number of big brands like Victoria’s Secret, Aerie from American Eagle Outfitters Inc. AEO, + 2.61%, and digital native brands like Thirdlove and Rihanna’s Savage x Fenty. The LB brand, + 0.40% Victoria’s Secret from L Brands Inc. is also undergoing a business makeover to keep up with changing trends. The company recently raised its targeting for the second time in weeks as stimulus funds and other factors drove what L Brands called “unusual shifts in consumer spending patterns.” Plus: Victoria’s Secret’s father raises guidance again, and analysts believe the stock could rise even higher. Women’s underwear, a category that’s growing to include items like sports bras, loungewear, and girdles like Spanx brand items or Kim Kardashian’s Skims brand, has grown to an industry of $ 19.6 billion. It is expected to grow at a compound annual growth rate (CAGR) of 4.3% from 2020 to 2025, based on data provided by Coresight Research. With the women’s underwear category fairly comprehensive, retailers may want to explore men’s options. NPD data shows that men’s underwear sales grew 2% during the second half of 2020, while men’s clothing fell 12%. Boxers increased 64% and boxers increased another 16%. “As we’ve seen across many clothing categories, consumers have focused on apparel that prioritize comfort, and underwear sales among men were no exception,” said Kristen Classi-Zummo, director of market information for apparel at dress from The NPD Group, in a statement.