1704 ET - Gap shares fell more than 14% in after-hours trading after the company cut its full-year revenue outlook and reported slowing sales for its Old Navy chain. The apparel retailer said it now expects revenue to increase 1% to 2% this year, down from its prior outlook of 2% to 3% growth. In total, first quarter sales rose 1% to $3.5 billion, slightly less than the $3.52 billion that analysts surveyed by FactSet expected. Old Navy's same-store sales growth slowed to 1% from 3% the year earlier. But there were bright spots. Same-store sales at its namesake Gap brand grew 10% year-over-year. And the company raised its outlook for full-year adjusted earnings per share to $2.30 to $2.40, up from $2.20 to $2.35. (suzanne.kapner@wsj.com)

(END) Dow Jones Newswires

May 28, 2026 17:04 ET (21:04 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.