The earnings call reflects a more positive sentiment, with Gap Inc. achieving sales growth and strong financial performance across most of its major brands, particularly Gap and Old Navy. However, the underperformance of Athleta and the impact of tariffs on operating margins are notable challenges.

Company Guidance

During The Gap, Inc.'s second quarter 2025 earnings call, the company reported strong financial performance, exceeding profit expectations with a gross margin expansion of 360 basis points to 41.2% compared to two years ago. The company achieved an operating margin of 7.8% and earnings per share of $0.57, up 6% from the previous year. Gap, Inc. ended the quarter with robust cash balances of approximately $2.4 billion, providing flexibility for investments. The call highlighted the positive comparable sales growth of 1%, with key brands like Old Navy and Gap posting comps of 2% and 4%, respectively. However, Athleta experienced a decline, necessitating a reset strategy. The guidance for fiscal 2025 includes net sales growth of 1% to 2% and an operating margin outlook of 6.7% to 7%, accounting for a net tariff impact of 100 to 110 basis points. The company continues to leverage its brand reinvigoration playbook to drive relevance and improve financial outcomes, while addressing challenges such as tariffs and macroeconomic conditions.

Gap Inc. Achieves Positive Sales Growth

Gap Inc. reported a 1% increase in comparable sales for the second quarter, driven by positive comps in its three largest brands: Old Navy, Gap, and Banana Republic.

Strong Financial Performance

Gap Inc. delivered EPS of $0.57, up 6% versus last year, and ended the quarter with strong cash balances of approximately $2.4 billion.

Successful Brand Reinvigoration at Gap

Gap brand reported its seventh consecutive quarter of positive comps, with a 4% comp in Q2, underlining the successful execution of its brand reinvigoration playbook.

Old Navy's Continued Strength

Old Navy delivered another strong quarter with a 2% comp, driven by strategic focus on key categories like denim and active.

Banana Republic's Steady Progress

Banana Republic achieved a 4% comp in the quarter, reflecting progress in reestablishing the brand in the premium lifestyle space.

Gap Inc (GAP) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GAP Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 19, 2025	2025 (Q3)	0.59 / -	0.72	―	―	―
Aug 28, 2025	2025 (Q2)	0.55 / 0.57	0.54	5.56% (+0.03)
May 29, 2025	2025 (Q1)	0.45 / 0.51	0.41	24.39% (+0.10)
Mar 06, 2025	2024 (Q4)	0.38 / 0.54	0.49	10.20% (+0.05)
Nov 21, 2024	2024 (Q3)	0.58 / 0.72	0.59	22.03% (+0.13)
Aug 29, 2024	2024 (Q2)	0.41 / 0.54	0.34	58.82% (+0.20)
May 30, 2024	2024 (Q1)	0.14 / 0.41	0.01	4000.00% (+0.40)
Mar 07, 2024	2023 (Q4)	0.23 / 0.49	-0.75	165.33% (+1.24)
Nov 16, 2023	2023 (Q3)	0.20 / 0.59	0.71	-16.90% (-0.12)
Aug 24, 2023	2023 (Q2)	0.09 / 0.34	0.08	325.00% (+0.26)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

GAP Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 28, 2025	$21.68	$22.01	+1.52%
May 29, 2025	$27.75	$22.15	-20.18%
Mar 06, 2025	$19.16	$22.77	+18.84%
Nov 21, 2024	$21.54	$24.30	+12.81%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.