Gap Inc. (NYSE:GAP) posted its first-quarter results after Thursday’s closing bell, missing revenue estimates and lowering its fiscal year revenue outlook. Here's a look at the details inside the report.
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Gap Q1 Details
Gap reported quarterly earnings of 90 cents per share, which beat the Street estimate of 42 cents, according to Benzinga Pro data.
Quarterly revenue came in at $3.5 billion, which just missed the analyst consensus estimate of $3.52 billion by 0.77%.
Gap reported the following quarterly highlights:
- Net sales of $3.5 billion were up 1% compared to last year. Comparable sales were up 2%.
- Store sales increased 3% compared to last year. The Company ended the quarter with nearly 3,500 store locations in about 35 countries, of which 2,477 were company-operated.
- Online sales decreased 2% compared to last year and represented 38% of total net sales.
- Gross margin of 40.5% decreased 130 basis points versus last year, exceeding outlook.
- Merchandise margin decreased 100 basis points versus last year, inclusive of an estimated net tariff impact of approximately 200 basis points.
“In the first quarter, Gap Inc. delivered continued progress against our strategic priorities, including further market share gains and achieving our ninth consecutive quarter of positive comparable sales,” said CEO Richard Dickson.
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Looking Ahead
Gap lowered its fiscal 2026 revenue outlook from $15.71 billion to $15.86 billion to $15.52 billion to $15.67 billion, versus the $15.74 billion analyst estimate.
GAP Stock Price Activity: According to data from Benzinga Pro, Gap stock fell 13.84% to $21.54 in Thursday's extended trading.
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