Difficult February Drags Gap Traffic Down in Q1 2025
Overall visits to Gap Banners declined 3.8% in Q1 2025 compared to the same period in 2024, with average visits per location falling 4.2%. The company’s performance appears to have been impacted by a particularly challenging February, when the absence of a leap year day and severe weather events led to a 10.2% drop in overall visits and an 11.0% decrease in average visits per venue compared to February 2024.
The company’s traffic was also somewhat weighed down by Banana Republic’s performance, which posted the largest year-over-year (YoY) declines of all Gap banners during the analyzed period. Meanwhile, the Athleta banner – which struggled somewhat in 2024 – returned to modest growth in Q1 2025, with overall visits up 0.4% and average visits per location up 1.1% YoY.
Signs of Growth in April 2025
Gap’s performance improved significantly in April, with the Gap and Old Navy banners seeing YoY increases in both overall visits and average visits per venue. Old Navy in particular saw its overall traffic jump 10.2% and average visits per location increase by 9.1% compared to April 2024 – likely boosted by a tariff-driven pull-forward in consumer demand.
Average visits per venue also increased at Banana Republic and Athleta – although both banners saw minor YoY declines in overall traffic. The positive April data may indicate that the company is gaining traction and could suggest a more robust year ahead.
Ulta’s Budding Recovery
Ulta saw YoY declines of 3.7% in total visits and 7.1% in average visits per venue in Q1 2025, driven in part by difficult comparisons to a strong Q1 2024. Like Gap, the company’s February performance likely hurt its Q1 performance, with February traffic down 7.4% and average visits per venue down 10.7% compared to February 2024. But Ulta’s visit metrics improved in March 2025, with visits just 1.0% lower than in March 2024, and average visits per venue metrics narrowing to a 4.3% decline.
By April 2025, overall visits were up 0.4% YoY, and visits per venue down just 2.8% – suggesting that Ulta, like Gap, is now on a potential upward trajectory.
While Q1 2025 presented challenges for both Gap and Ulta, the rebound in April traffic offers a hopeful indication of strengthening consumer engagement. Will the companies maintain their momentum, or was the April rally the result of a temporary pull-forward of demand?
Keep up with The Anchor to find out.
.svg)