Gap Inc’s 2025 first quarter fiscal report revealed that the corporation experienced a net sales increase of two per cent in the first quarter of fiscal 2025, reaching $3.46 billion. The apparel retailer’s operating income increased 26.8 per cent to $260 million, with net income soaring 22 per cent to $193 million. The profitability was attributed to the performance of Gap Inc’s strongest two brands, Gap and Old Navy, which enjoyed a 5 per cent and 3 per cent sales growth, respectively,
vely, over the last quarter.
However, similar success couldn’t be said about Gap Inc’s other two brands, Banana Republic and Athleta.
Banana Republic’s net sales fell by 3 per cent to $428 million, with Athleta experiencing a decrease of 6 per cent in net sales, amounting to $308 million.
Despite several efforts to revive Banana Republic’s image, including the launch of a home goods line in 2023 and the launch of an athletic and kidswear category in 2022, the apparel brand’s efforts have not proved fruitful.
In 2024, Banana Republic’s last president and CEO, Sandra Stangl, left the company, and Dickson has been on the hunt since looking for fresh talent to bring new life to the brand.
As Dickson told Women’s Wear Daily, “We’ve gone back to the roots of the brand and what made it great to begin with – the Safari look – but we’re reestablishing the brand to convey a modern explorer and travel story. It’s really starting to resonate. There is still work to do, but we are continuing to strengthen the foundation with each passing quarter.”
In the meantime, Banana Republic has been leaning into similar playbook strategies that Gap has used to facilitate a comeback, such as pop-culture-inspired collaborations and partnering with socially relevant celebrity figures.
The influence of Banana Republic’s The White Lotus collaboration
This March, Banana Republic released a print-heavy, luxury-inspired apparel collection based on HBO’s hit series The White Lotus.
Similar to several of Gap’s collections featuring pop culture figures like Tyla and Troye Sivan, Banana Republic tapped actor Patrick Schwarzenegger to star in the campaign.
This drop showcased Richard Dickson’s strategy of using ‘fashiontainment’ to help capture consumers’ attention and drive social relevance for the brand.
As Dickson told Inside Retail, “It’s rooting product and storytelling with a strong point of view that connects, appreciating that retail is detail so that our stores and our sites are both engaging and inspiring.”
Sable Williams, the founder of digital marketing studio Sequin Soiree, commented, “Strategic collaborations like The White Lotus partnership can contribute to sustained momentum if coupled with strong digital storytelling, consistent experiential activations, and a well-rounded omnichannel approach.
“For Banana Republic to maintain this trajectory,” Williams mused, “future partnerships should continue blending fashion and culture in an organic and immersive way. Whether through partnerships with upcoming films, travel brands, or hospitality experiences, the key lies in making every collaboration feel like a lifestyle moment – not just a product drop.”
How should Banana Republic go forward from here?
“As a higher-priced brand, Banana Republic needs to carefully justify its premium by having a clear lifestyle position and a distinct handwriting that sets it apart from the mass of other brands out there,” Neil Saunders, MD of GlobalData, cautioned.
“The challenge in doing this is that Banana Republic carries a lot of baggage from the past when it chopped and changed its identity. This means any shift will take time to filter through and solidify among consumers. This hasn’t really happened yet, and there are too many people who don’t see Banana as a premium brand.”
Saunders suggested that Banana Republic should continue its focus on elevating the look and feel of the store to reflect the new image it aspires to have.
“I think Banana Republic can be revamped,” Saunders mused. “However, it is a more complex task than for Gap and Old Navy, especially in this more constrained market.”
Similarly, Naomi Omamuli Emiko, founder and owner of TNGE, a growth studio built to accelerate beauty and wellness brands, told Inside Retail that Banana Republic has its work cut out for itself.
“Reviving Banana Republic is a cultural relevance challenge. Gap and Old Navy have heavily leaned into nostalgia and accessibility through campaigns, collaborations and communication,” Emiko observed.
“Banana Republic now needs to rediscover a compelling narrative rooted in aspiration. Consumers once associated the brand with worldly sophistication, but to maintain that perception among today’s luxury-adjacent consumers, it needs more than a neutral color palette and elevated basics,” she elaborated.
Emiko added, “To reignite interest, it needs to communicate not just what it sells, but how it makes people feel. It must meet consumers where they are, in the exact moments when they’re meant to experience the brand. This could mean anchoring the brand in modern escapism, channeling an ‘urban nomad meets slow luxury’ aesthetic.”
“This kind of brand revival requires a lot more than buzz, it needs brand depth. So the question isn’t whether Dickson can modernize Banana, but whether he can equip the brand to go deep enough to become inevitable for a new generation,” Emiko concluded.