Overview

• Fiscal Q2 net sales were $3.73 billion versus $3.74 billion expected, comparable sales rose 1%, and earnings per share were $0.57, topping forecasts.
• Athleta was the main drag with sales of $300 million down 11% and comparable sales down 9%, while Old Navy, Gap and Banana Republic each posted positive comps.
• Management raised its fiscal 2025 tariff impact estimate to $150 million to $175 million and guided full-year operating margin to 6.7% to 7.0%.
• Gap reaffirmed 2025 net sales growth of 1% to 2% and projected Q3 revenue to increase 1.5% to 2.5%.
• Shares fell about 5% to 7% in late trading; the company ended the quarter with roughly $2.4 billion in cash and highlighted strong engagement from its “Better in Denim” campaign.