• by Sarah Mahoney , Staff Writer, July 15, 2026

Hailey Bieber is bringing her zillennial pout to Gap this summer, with a limited-edition collection of slouchy jeans that look remarkably like Gap's greatest hits of 1996 — the year she was born. It launches as denim sales diverge sharply across the sector, with retailers — including Gap-owned Old Navy — seeing very different fortunes depending on how they're reading shoppers' fit preferences.

The capsule includes two relaxed fits, the Extra Baggy and Low Rise Loose, with updated fit proportions and six custom washes. It also features "1996" design details referencing Bieber's birth year, along with her signature printed inside the pocket lining.

Harking back to the '90s is, of course, in keeping with the ongoing nostalgia millennial and Gen Z shoppers have for that era. But it's also a telling choice for Gap, which — one could argue — reached peak cultural relevance then. Remember when Sharon Stone wore a Gap turtleneck to the 1996 Academy Awards?

The campaign is set in a reimagined '90s bedroom, scored to the Cranberries' "Linger," and aims to blend "minimalism and humor through a modern fashion point of view," according to the release. The teaser is a throwback too, showing the model/actor/entrepreneur sidling up to a ginormous '90s-era desktop computer.

The launch, priced at $89, "builds on the growing momentum around Gap's relaxed denim silhouettes and further positions Gap denim at the intersection of fashion, music and culture," the company statement said.

Gap recently reported its ninth consecutive quarter of sales growth driven by gains in denim. The company has been bolstering buzz with specialty launches, including capsule collections with Victoria Beckham and Harlem Fashion Row, but the denim demand is companywide — powering gains in kids' and baby sales too. Even Old Navy, which saw some missteps in other categories, maintained a top-three position in jeans.

Levi Strauss & Co. recently posted impressive sales gains for the  second quarter, attributing the numbers to its strategic goal of becoming a denim lifestyle brand.

Not all retailers are getting the denim boost, though. Abercrombie & Fitch, in recent results, said denim demand was unchanged. And American Eagle Outfitters is stumbling: the company said in recent quarterly results that softness in denim contributed to a 2% sales decline.

AEO executives say they're moving fast to fix this problem. "We are 100% focused there," said Jennifer Foyle, the company's president and executive creative director, on the retailer's latest earnings call. "We know where the problem is. We are going to pivot, and we have already done testing for back to school. We know what rises are working. We know what fits are working."

Observers are also watching a sleeper brand that may be due for a renaissance. Authentic Brands Group, which acquired the Lee brand from Kontoor earlier this year in a deal reported to be close to $1 billion, just announced a partnership with Experience Group to accelerate Lee jeans sales across Europe and other international markets. Authentic says Lee generates $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% coming from outside the U.S. and Canada.

Some observers remain skeptical Gap can sustain its comeback momentum. Gap's efforts have brought some positive, even admirable results, Morningstar analyst David Swartz writes in a recent note. But he's doubtful any of the company's banners offer a real brand advantage: "Competition remains relentless."