Overview
- Comparable sales rose 5% in the fiscal third quarter, topping estimates, with EPS of $0.62 and revenue of $3.94 billion.
- Guidance increased to 1.7%–2% full‑year net sales growth and about a 7.2% operating margin that includes an estimated 100–110 basis‑point tariff impact.
- Brand performance diverged: Gap +7%, Old Navy +6%, Banana Republic +4%, while Athleta fell 11% as its reset continues.
- Executives cited fewer promotions and stronger regular‑price sell‑through as key offsets to tariff headwinds that reduced net income to $236 million.
- Culturally resonant campaigns and collaborations, including the viral 'Better in Denim' effort with Katseye, underpinned momentum heading into the holiday period.