Most retailers are still scared about slow sales, but today, WWD reports Gap's profits are up 26%. It's a big leap for a company that's endured a very public struggle, plus big changes in both their executive and creative teams. We're sure retail analysts have their own scientific reasons for the rise in profits, but here's our inside scoop into why Gap is gaining... 1. Their European collection was a hit on both sides of the Atlantic. Balenciaga's Marie Amelie Sauve brought a whole new dimension to khakis and white shirts when she consulted on the line, and we're sure Pierre Hardy's shoes will sell out in minutes. When Gap picks a shoe designer stateside, we'll be waiting. 2. Magazines may still want celebs on their covers, but Gap finally gets us back to models. Stam, Anja, Caroline, Coco, and Chanel Iman all said "cheese" for $49.99 denim, and that was perfect. Gap is finally targeting the fashion crowd, and it's a good idea. 3. They lowered their prices. A couple of months ago we walked into a Gap store and everything was on sale. Doing away with excess sale stickers and pricing clothes according to their worth might be their best move yet. If it costs less, people buy more, right? 4. This one pair of boys pajamas. They're navy with skulls and we want them. This is the true secret of Gap's success.