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Gap Inc (GB:0ITS)
LSE:0ITS
Earnings Data
Report Date
May 21, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.38Last Year’s EPS
0.51Same Quarter Last Year
Strong Buy
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a generally positive tone driven by multi-quarter momentum across Old Navy, Gap and Banana Republic, strong full-year gross margin (40.8%), solid cash generation ($3.0B cash, $1.3B operating cash, $823M FCF), and a disciplined capital allocation plan including a $1B buyback authorization and dividend increase. Key strategic initiatives (Encore loyalty, Beauty & Accessories expansion, Fashiontainment, AI/tech investments) and a confident 2026 outlook further support upside. Offsetting these positives are material tariff-driven margin headwinds (notably a ~200bp Q4/Q1 impact), an EPS decline in the quarter, inventory cost increases (+7% YoY) and continued weakness at Athleta, which will require time and investment to fix. On balance, the highlights (consistent comp growth, margin resilience, cash strength, and clear strategic roadmap) outweigh the lowlights (tariff pressure and Athleta weakness), supporting a constructive view for the company's trajectory while acknowledging near-term cadence risks.Company Guidance
Consistent Comparable Sales Momentum
Fourth quarter comparable sales +3% (eighth consecutive quarter of positive comps); full-year comparable sales +3%; second consecutive year of top-line growth with full-year net sales +2% (at high end of outlook).
Strong Brand Performance — Old Navy
Old Navy Q4 net sales $2.3B, net sales and comps +3%; five consecutive quarters of positive comps; ranked top 3 in 9 of the 10 largest apparel categories and gained share in the 5 largest categories; Disney partnership made Old Navy Disney's #1 DTC apparel partner in the U.S.; creator engagement grew to >15,000 creators in Q4 (~3x YoY).
Resurgence of Gap Brand
Gap Q4 net sales $1.1B, net sales +8% YoY and comps +7% (ninth consecutive quarter of positive comps); strength in fleece, logo, denim and sleepwear; meaningful reduction in discounting and new store formats outperforming fleet.
Banana Republic Progress
Banana Republic Q4 net sales $549M (+1% YoY) with comps +4%; third consecutive quarter of comp growth driven by sharper merchandising and head-to-toe assortments.
High Gross Margin and Operating Income
Full-year gross margin 40.8% (one of the highest in ~25 years); full-year operating income $1.1B and operating margin 7.3%; underlying margin expansion implied after adjusting for tariff impacts.
Strong Cash Generation and Capital Allocation
Ended FY2025 with $3.0B cash (highest in nearly 2 decades); net cash from operations $1.3B; free cash flow $823M; paid $247M dividends and repurchased 7M shares for $155M; Board approved $1B share repurchase authorization and raised Q1 dividend ~6% to $0.175/share.
Strategic Investments and New Initiatives
Launched Encore loyalty (nearly 40M active members), appointed Chief Entertainment Officer to scale 'Fashiontainment', piloted Old Navy beauty in 150 stores and plans to expand beauty and accessories; 2026 capex guide ~$650M to invest in stores, technology and supply chain.
Clear 2026 Financial Outlook with EPS Growth Target
Full-year 2026 guidance: net sales growth ~2–3%, adjusted operating margin ~7.3–7.5%, reported EPS $2.71–$2.86 (includes $0.51 legal settlement benefit), adjusted EPS $2.20–$2.35 (implying adjusted EPS growth ~4–10% YoY).
GB:0ITS Earnings History
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
GB:0ITS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 05, 2026 | $26.41 | $23.71 | -10.23% |
Nov 20, 2025 | $23.02 | $25.05 | +8.82% |
Aug 28, 2025 | $21.21 | $21.86 | +3.07% |
May 29, 2025 | $27.47 | $22.29 | -18.88% |
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.
FAQ
When does Gap Inc (GB:0ITS) report earnings?
Gap Inc (GB:0ITS) is schdueled to report earning on May 21, 2026, After Close (Confirmed).
What is Gap Inc (GB:0ITS) earnings time?
Gap Inc (GB:0ITS) earnings time is at May 21, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Gap Inc stock?
The P/E ratio of Gap Inc is N/A.
What is GB:0ITS EPS forecast?
GB:0ITS EPS forecast for the fiscal quarter 2026 (Q1) is 0.38.
