Gap Q2 2026 earnings

Key Points:

• Gap announced Michael Francis as the new CEO of Old Navy effective Nov. 2, replacing Haio Barbeito, as part of a planned transition to address sluggish sales at the brand.
• Old Navy posted a 4% decline in net and comparable sales in the fiscal second quarter, marking its first negative same-store sales since early 2023, partly due to an unanticipated slowdown in customer traffic and weak summer marketing.
• Gap's overall fiscal second-quarter results showed mixed performance, with earnings per share beating expectations at 52 cents but revenue slightly missing estimates at $3.65 billion; comparable sales declined 1% company-wide.
• The Gap banner saw strong growth with a 10% increase in comparable sales and 9% rise in net sales, driven by culturally relevant product storytelling, while Banana Republic also grew modestly and Athleta experienced a 12% sales decline.
• Gap narrowed its full-year net sales growth outlook due to Old Navy's challenges but raised its adjusted earnings per share forecast, benefiting from tariff refunds that boosted gross margins significantly in the quarter.