Gap (GAP) Q2 2025 earnings
Openness’The second financial second quarter income came lighter than expected on Thursday, but sales in the Republic of Banana exceeded the expectations when the brand’s return began to show results.
According to Streetaccount, the Old Navy, Athleta, Banana Republic and the name behind Banner have seen an increase of 1% of comparable sales in this quarter, and according to Streetaccount, the analysts expected are weaker than an increase of 1.9%. While general income expectations also missed, earnings per share was better than predictions.
GAP’s shares fell into trade after work.
GAP, the Banana Republic and Old Navy saw that comparable sales in the quarter increased, while Athleta reduced the company’s overall performance by 9%.
“Frankly, Athleta is a strong brand in space, the number five in space, but we were disappointed in a quarter.” He continued: “We tried to take a new customer to court and ultimately we did not have enough offer for our core customer. Since we balance it, we were very transparent to say that this was the year of reset for us.”
Last month, the GAP announced that Nike has been used as the next CEO of Maggie Gauger for a long time, Maggie Gauger, the third top manager to manage the brand in the last two years.
Based on a questionnaire of LSEG’s analysts, how Wall Street is carried out in the quarter compared to what it envisages:
- Earning per share: 57 cents and 55 cents are expected
- Revenues: Expected $ 3.73 billion and $ 3.74 billion
The company’s net revenue for the three -month period, which ended on August 2, was 57 cents per share compared to 206 million dollars a year ago or 54 cents per share.
Sales increased from $ 3.72 billion to $ 3.73 billion compared to the previous year.
According to LSEG, the Company confirmed the Mali 2025 Net Sales Growth appearance again and continues to wait for the income to grow between 1%and 2%in accordance with 1.6%predictions, according to LSEG. For the current quarter, the GAP expects a better sales of analysts to grow by 1.5% to 2.5%, according to LSEG.
When the GAP reported the latest results in May, the tariff situation in Asia, where the company produced some products, was still shaped, but now the picture is clearer. Previously, he expected the tariffs to have a clear cost of 100 million to 150 million dollars, and on Thursday, these costs will now be between $ 150 million and $ 175 million.
To balance the effect, GAP does what other companies do: working with suppliers, adjusting the supply, diversifying the supply chain and getting targeted price increases when appropriate.
In particular, the company said that the annualization of tariffs did not expect to cause further decrease in business revenue in 2026.
“Since it is related to pricing, we make targeted adjustments with pricing, as we always do. There is nothing very different.” He said. “We focus on making sure that we offer the right value proposal to our consumer, and ultimately we want to make sure that we maintain the momentum and market share of our game book.”
After two years, the company is in a very different position after Dickson’s CEO of GAP’s CEO. There were six flat quarters of comparable sales growth, sitting on a $ 2.2 billion cash pile, and brands returned to the center of culture and speech.
Recently, GAP has launched a “Better in Kot” campaign with Katseye and Kelis’s 2003 hit “Milkshake”. Dickson said that the campaign is a prominent success that offers 20 million views, 400 million total views and 8 billion impressions in the first three days. Dickson also said that Tiktok was the number 1 call.
“We all have passed through a clothing retailer a few years ago, and we can assume that it is a pop culture brand that tells the great stories to consumers from a retail perspective, and that it is a pop culture brand that directs great merchant initiatives and shaped some cultures with culture,” Dickson said. He said. “This proves that GAP is a powerful pop culture brand, and at the same time it seems like our game book when you understand it right.”
The campaign, especially in the important denim category, especially Levi’s Beyoncé and American EagleCampaign with Sydney Sweeney. At a time when consumers retreated to beautiful products such as new clothes and accessories, retailers had to do more to cut the noise and make sure they were resonating with consumers.
Nevertheless, while the company continued to take steps in the return plan, Wall Street waited a lot and had to work harder to overcome the GAP expectations.
According to StreetCount, the gross profit margin for a quarter was 41.2%and 41.2%behind expectations.
Here is a closer look at how every brand performances:
Old Navy: The GAP’s largest and most important brand has seen sales of $ 2.2 billion with an increase of 1% compared to last year. According to StreetacCount, comparable sales increased by 2%by 2.2%.
Openness: Nameake Banner, an increase of 1% compared to last year, 772 million dollars of sales saw a net sales. According to Streetaccount, comparable sales increased by 4%compared to 4.1%expectations. Comparative sales growth of the seventh quarter.
Banana Republic: Safari-Chic, Business Essentials brand, decreased by 1% compared to last year, a net sales of $ 475 million. According to StreetCount, comparable sales increased by 4%in front of 0.2%expectations.
Athleta: The Athleisure brand has decreased by 11% compared to last year. Comparative sales fell by 9%. The brand’s new CEO wants to reversed this collapse and re -connect with Athleta’s core consumers.
