Stock Movers Deep Dive: Gap Confronts Tariff Trouble
Jun 29, 2025
Amanda Mull, a Senior reporter for Bloomberg Businessweek, discusses the challenges facing Gap as its CEO strives to save the iconic brand from decline. She outlines the impact of Trump's tariff policies and explores the company’s efforts to revitalize its culture and financial health. The conversation highlights the strategic pivots in leadership, the competitive landscape of retail, and the implications of economic policies on the fashion industry. Mull's insights reveal a classic brand navigating modern challenges.
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Gap's Cultural Fashion Reign
- Gap was the king of American fashion in the '80s and '90s, influencing casual American style deeply.
- Its advertising with iconic celebrities and photographers made it culturally significant beyond just clothing.
Retail Shift Led to Gap's Decline
- Gap's decline mirrored mall decay and new competition from fast fashion and online shopping.
- It struggled with debt and massive leases during a retail landscape shift, losing relevance.
Mickey Drexler's Transformative Leadership
- Mickey Drexler led Gap for 20 years, making meaning out of basic clothes and keeping the brand culturally relevant.
- His leadership shaped Gap into a cultural icon, though it was not enough to save his job.