Dive Brief:

• San Francisco-based Gap Inc. beat Q1 estimates with a 1% increase in Q1 net sales to $3.77 billion. Net profit in the first quarter fell 22%, from $333 million last year to $260 million. 

• Old Navy’s activewear, especially in the “ath-leisure” category of apparel that can go from the gym to happy hour, did especially well, analysts said. The category is hot right now and Old Navy sells its clothing at affordable prices.

• E-commerce was also Gap Inc.’s friend: The company’s Q1 web sales rose 13% and helped hedge against falling Q1 sales in stores open more than a year. 

Dive Insight:

Gap Inc.’s flagship Gap brand has yet to regain its footing, but the company is being saved by its e-commerce and its lower-priced Old Navy brand. But although the activewear category seems like an almost limitless opportunity for growth right now, no doubt that can’t last forever.