GAP (GAP) K2 2025 Earnings

Jaz ‘With the fiscal income of the second quarter, he arrived in the condition than he was expected on Thursday, but the sale of the Republic has exceeded the expectations because the brand reversal begins to show results.

Company special clothes behind the old navy, athlete, banana and its name banner, comparable sales increased by 1% during a quarter, lower than 1.9% increase in analysts. Overall revenues also missed expectations, while earning in action entered better than the assessment.

The shares of the gap drops are more than 5% in ghost store.

While Drag, the Banana Republic and the Old Navy saw all the comparable sales growth during a quarter, the attracts withdrew the entire performance of the company with a 6%.

“It is clear that the athlete is a powerful brand, which is a brand number five in space.” We removed that General Director of Richard Dickson, trying to court a new customer, and in the end I don’t have enough offer for our customer core. As we balanced it, we were very transparent to say that it was a year of resetting for us. ”

Last month, Gap announced it Maggie GaugerLong time, Veteran Nike, was tapped as the next General Manager of Athlete – the third above executive officer hired at the Helm Brand in the last two years.

Here’s how the gap occurred in a quarter compared to what Wall Street predicted, based on the research of analysts by LSEG:

• Earnings per share: 57 cents compared to 55 cents
• Revenue: 3.73 billion dollars expected in relation to $ 3.74 billion

Reports on the net income for a quarterly period ended 2. August was 216 million dollars or 57 cents per share, compared to $ 206 million, or 54 cents per share, a year earlier.

The sale rose to $ 3.73 billion, just from $ 3.72 billion a year earlier.

The company has confirmed its fiscal sales growth in the amount of fiscal 2025 and continues to expect revenue to grow between 1% and 2%, in accordance with estimates 1.6%, according to LSEG. For the current quarter, GAP expects to grow between 1.5% and 2.5%, better than 2%, which assessed analysts, according to LSEG.

When the gap Last reports in MayThe tariff situation in the whole of Asia, where the company produces some of its products, it still shaped, but now the image is clearer. He previously said that the expected tariffs cost between $ 100 million and $ 150 million on the net basis and Thursday, those costs will now be between $ 150 million and $ 175 million.

To compensate for influence, GAP works that other companies do: work with your suppliers, adjusting their source, diversifying your supply chain and taking a target price as needed.

The familiar company said that does not expect the annual tariffs to cause further rejects from working income in 2026. years.

“As it refers to prices, we target adaptation, as we always do. There is nothing we did, it is essentially different,” Dickson said. “We focus on security that we will present the right value on our consumer, and in the end, we want to make even more safer to keep the momentum and market share in which our medicine performed.”

Several two years in Dickson’s mandate as the General Manager of GAP, the company is in a far different position. It was seen six flat quarters of comparable sales growth, sit on a wallet for $ 2.2 billion, and its brands return to the center of culture and conversation.

Recently, Gap launched better in Trana in the denim campaign with Katseya and Kelisov 2003 hit “Milky Cake”. Dickson said the campaign was an adoption of success, delivering 20 million opinions in the first three days, 400 million total views and 8 billion impressions. It’s also search 1 in tiktok, Dickson said.

“We could all admit from the clothes seller just a few years ago, it was now a promotional trafficking and that it was a great dealer and that it was excellent that Gap was a powerful pop culture brand, and it is also our book look like it.”

The campaign emphasizes that clarified spaces are invested to remain competitive in the key category of denim, especially with the recent partnership of Levi with Beyonce and American EagleCampaign with Sydney Sveenei. The moment, the consumers are pulled on pretty products as well as new clothes and accessories, traders had to do more to slap through noise and ensure they were reverbled with consumers.

However, as the company continues to progress in its turnaround plan, Wall Street came to expect much, and the gap had to strive to win expectations.

During the quarter, its gross margin came to 41.2%, after expected 41.9%, towards the streets.

Here is a closer look at how each brand has performed:

Old navy: The largest and most important brand is $ 2.2 billion sales, compared to 1% compared to last year. The comparable sales increased by 2%, compared to the expectations of 2.2%, towards the streets.

GAP: Imameake Banner saw net sales of $ 772 million, compared to 1% compared to last year. The comparable sales increased by 4%, compared to the expectations of 4.1%, towards the streets. Is the seventh consecutive quarter of comparable sales growth.

Banana Republic: Safari-Chic, a business base brand Video net sales of 475 million dollars, compared to 1% compared to last year. The comparable sales was 4%, far ahead of expectations of 0.2%, towards the streets.

Athleta: The ATLEISURE brand Video is a sale of 300 million dollars, 11% reduced compared to last year. The comparable sale is 9% reduced. The new General Director of the brand requires that the decline reverses and reconnect from the Athlet Consumer Core.