GAP (NYSE:GAP – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01), FiscalAI reports. The company had revenue of $3.50 billion for the quarter, compared to analyst estimates of $3.52 billion. GAP had a net margin of 5.31% and a return on equity of 22.98%. The firm’s revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.51 EPS. GAP updated its FY 2026 guidance to 2.300-2.400 EPS.
Here are the key takeaways from GAP’s conference call:
- Gap Inc. posted its ninth straight quarter of positive comparable sales, with company comps up 2% and gross margin coming in ahead of expectations. Management also said the quarter was in line with internal plans overall despite mixed brand performance.
- Old Navy underperformed due to weaker seasonal women’s dress sales, and the company said the assortment and price/value mix did not resonate as intended. Trends improved after mid-May adjustments, but the brand’s full-year outlook was moderated.
- Gap brand continued to be the standout performer, with Q1 comparable sales up 10% and positive comps for a 10th consecutive quarter. The company highlighted stronger cultural storytelling, lower discounting, and gains in denim, fleece, and kids as drivers of momentum.
- Athleta remained in rebuild mode and posted a disappointing quarter, with sales down as the company worked through legacy inventory and reshaped the assortment. Management expects Q2 to look similar to Q1 before improvement later in the year.
- Gap raised full-year EPS guidance to $2.30-$2.40 while trimming sales growth expectations to 1%-2%. The updated outlook reflects tariff timing assumptions, cost discipline, stronger buybacks, and continued investment in growth initiatives like beauty, accessories, loyalty, and AI-enabled tools.
GAP Stock Performance
NYSE GAP opened at $24.95 on Friday. The firm has a market capitalization of $9.11 billion, a P/E ratio of 11.60, a P/E/G ratio of 1.39 and a beta of 2.11. GAP has a 1-year low of $18.68 and a 1-year high of $29.36. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.75 and a quick ratio of 1.08. The business’s 50-day simple moving average is $24.26 and its 200-day simple moving average is $25.69.
GAP Announces Dividend
Analyst Ratings Changes
A number of analysts recently commented on GAP shares. JPMorgan Chase & Co. increased their price objective on GAP from $33.00 to $35.00 and gave the company an “overweight” rating in a research note on Friday, March 20th. Wall Street Zen lowered GAP from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Weiss Ratings raised GAP from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, March 25th. TD Cowen decreased their price target on GAP from $32.00 to $26.00 and set a “buy” rating on the stock in a research note on Monday, May 18th. Finally, Evercore set a $20.00 price target on GAP in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, GAP currently has an average rating of “Moderate Buy” and a consensus target price of $29.21.
Check Out Our Latest Research Report on GAP
Insiders Place Their Bets
In other news, major shareholder John J. Fisher sold 300,000 shares of GAP stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $25.40, for a total value of $7,620,000.00. Following the transaction, the insider directly owned 446,781 shares of the company’s stock, valued at $11,348,237.40. The trade was a 40.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Julie Gruber sold 74,217 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $23.85, for a total value of $1,770,075.45. Following the completion of the transaction, the insider directly owned 53,970 shares in the company, valued at approximately $1,287,184.50. The trade was a 57.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 923,098 shares of company stock worth $22,648,158. 31.00% of the stock is owned by insiders.
Hedge Funds Weigh In On GAP
A number of hedge funds have recently bought and sold shares of the company. Public Employees Retirement System of Ohio grew its stake in GAP by 2.7% in the fourth quarter. Public Employees Retirement System of Ohio now owns 73,812 shares of the company’s stock worth $1,890,000 after purchasing an additional 1,945 shares in the last quarter. Russell Investments Group Ltd. grew its stake in GAP by 94.8% in the fourth quarter. Russell Investments Group Ltd. now owns 72,239 shares of the company’s stock worth $1,849,000 after purchasing an additional 35,146 shares in the last quarter. Captrust Financial Advisors grew its stake in GAP by 34.4% in the fourth quarter. Captrust Financial Advisors now owns 61,792 shares of the company’s stock worth $1,582,000 after purchasing an additional 15,816 shares in the last quarter. Atlas Capital Advisors Inc. acquired a new stake in GAP in the fourth quarter worth $203,000. Finally, Brooklyn Investment Group acquired a new stake in GAP in the fourth quarter worth $312,000. 58.81% of the stock is currently owned by institutional investors and hedge funds.
Trending Headlines about GAP
Here are the key news stories impacting GAP this week:
- Negative Sentiment: Gap cut its full-year sales forecast, saying slower growth at Old Navy and weaker discretionary spending are hurting demand. The company now expects revenue growth of 1% to 2%, down from 2% to 3%, which raised concerns about consumer softness and near-term sales momentum. Article Title
- Negative Sentiment: The company missed first-quarter revenue expectations and posted EPS of $0.38 versus the $0.39 estimate, reinforcing worries that results are not keeping pace with analyst forecasts. Article Title
- Negative Sentiment: Management said Old Navy’s spring and summer assortment did not resonate with shoppers, a key reason the company lowered its outlook and why the stock dropped sharply in after-hours and premarket trading. Article Title
- Neutral Sentiment: Gap still reported some positives, including 1% revenue growth, 2% comparable-sales growth, and a raised full-year EPS outlook, but those upside points were outweighed by the cautious sales guidance. Article Title
GAP Company Profile
Gap Inc is a global specialty retailer renowned for its portfolio of apparel and accessories brands, including Gap, Banana Republic, Old Navy and Athleta. The company designs, sources and markets clothing across a broad price range and style spectrum, catering to men, women and children. Its offerings extend from everyday wardrobe essentials such as denim, tees and outerwear to performance and lifestyle pieces, reflecting each brand’s distinct identity and price point.
Founded in San Francisco in 1969 by Donald and Doris Fisher, Gap Inc has grown into one of the world’s largest apparel companies.
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