Gap (GAP) earnings Q1 2026
CNBC • • business
Key Points:
- Old Navy's fiscal first-quarter comparable sales grew 1%, below the 3% analysts expected, prompting Gap to lower its full-year sales growth forecast to 1-2% from 2-3%.
- Despite the sales miss, Gap raised its adjusted earnings per share guidance to $2.30-$2.40, up from $2.20-$2.35, driven by tax benefits and interest income.
- Gap's overall Q1 revenue was $3.50 billion, slightly below expectations, while adjusted EPS was 38 cents versus the 37 cents anticipated; net income rose significantly year-over-year to $339 million.
- Brand performance varied: Gap's namesake brand saw strong 10% comparable sales growth, Banana Republic posted modest 2% growth, and Athleta experienced an 11% decline in comparable sales.
- CEO Richard Dickson attributed Old Navy's weak sales to a less appealing spring and summer product assortment rather than broader economic issues, highlighting weak demand for dresses and swimwear but strength in activewear, denim, and kids' categories.