Overview
- Gap topped estimates with adjusted EPS of $0.62 and revenue of $3.94 billion, alongside a 5% companywide comparable sales increase.
- Management raised full‑year guidance to 1.7%–2% net sales growth and about a 7.2% operating margin, including an estimated 100–110 basis points tariff impact.
- Brand performance diverged: Gap comps rose about 7%, Old Navy 6%, Banana Republic 4%, while Athleta fell 11% as that brand continues a reset under new leader Maggie Gauger.
- Executives credited culturally relevant campaigns such as “Better in Denim”/“Milkshake” for driving traffic, denim strength and lower reliance on discounting.
- Shares rose about 5% in after‑hours trading Thursday and were up roughly 9% on Friday following the report.