• Reported GAAP EPS of $0.46 down -16.36% YoY • Reported revenue of $4.24B up 2.10% YoY • Gap Inc. expects full year fiscal 2026 net sales to be up 2% to 3% year-over-year and adjusted diluted earnings per share to be approximately $2.20 to $2.35, with gross margin flat to up slightly.
Bullish
Gap Inc. achieved its eighth consecutive quarter of positive comparable sales, with strong performance from Gap and Old Navy brands. The company exceeded its operating income outlook and authorized a new $1B share repurchase.
Bearish
Gap Inc. experienced Q4 gross margin compression due to tariff impacts, while Athleta's sales declined 11%. Inventory increased 7% year-over-year, also primarily due to higher tariff costs.