Particle.news
Download on the App Store
8 ARTICLES
·
last wk.

Gap Inc. Q1 Earnings Beat Expectations as Tariff Warning Sends Shares Tumbling

Diversifying its supply chain by boosting U.S. cotton sourcing aims to offset an anticipated $100M-150M drag on operating income from tariffs.

Sweatshirts inside a Gap store in the Times Square neighborhood of New York, US, on Monday, Nov. 13, 2023.
A person shops on Thanksgiving at a Gap store in Times Square, ahead of Black Friday, in New York City, U.S., November 28, 2024. REUTERS/Brendan McDermid/File Photo
Image
FILE – A nurse prepares a syringe of a COVID-19 vaccine at an inoculation station in Jackson, Miss., July 19, 2022. U.S. health officials are proposing a simplified approach to COVID-19 vaccinations, which would allow most adults and children to get a once-a-year shot to protect against the mutating virus. The new system unveiled Monday, Jan. 23, 2023 would make COVID-19 inoculations more like the annual flu shot. Americans would no longer have to keep track of how many shots they’ve received or how many months it’s been since their last booster.

Overview

  • Gap Inc. reported first-quarter net income of $193 million on $3.5 billion in sales, surpassing analyst estimates.
  • The company projects a $100 million to $150 million hit to fiscal 2025 operating income from U.S. and Chinese tariffs after mitigation strategies.
  • Shares plunged about 20% in early trading following the tariff outlook despite sustained growth at its core banners.
  • Old Navy’s comparable sales rose 3% and Gap brand sales increased 5%, while Banana Republic and Athleta saw sales declines of 3% and 6%, respectively.
  • Gap reaffirmed its full-year revenue guidance of $15.25 billion to $15.4 billion and forecast flat second-quarter sales as it executes its turnaround plan.