Strong Comparable Sales Growth
The Gap, Inc. reported a 5% increase in comparable sales, the highest quarterly comp in over four years. This growth was driven by strong performances from Old Navy, Gap, and Banana Republic.
Operating Margin and Cash Position
The company delivered an operating margin of 8.5%, benefiting from growth in Average Unit Retail (AUR). They ended the quarter with strong cash balances of approximately $2.5 billion.
Old Navy and Gap Brand Success
Old Navy's comparable sales were up 6%, with the brand gaining market share and showing strong performance in categories like denim and activewear. Gap's comparable sales increased by 7%, marking the eighth consecutive quarter of positive comps, driven by successful campaigns like 'Better in Denim.'
Supply Chain and Technological Advancements
The company introduced new automation and AI capabilities across its fulfillment network, increasing productivity by nearly 30% compared to previous years.
Updated Fiscal Year Outlook
The company raised its full-year 2025 net sales growth to the high end of its prior range and increased its operating margin outlook.