NYSE$GAP

Gap, Inc. · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Gap reported increased revenue and earnings in Q1 2025 compared to the prior year.

Gap Inc. delivered stronger than expected Q1 2025 results, driven by market share gains in Old Navy and Gap, with positive comparable sales and improved operating margin.

  • Net sales increased 2% year-over-year to $3.5 billion.
  • Gap and Old Navy both saw positive comparable sales and market share growth.
  • Operating income grew to $260 million with a 7.5% margin.
  • EPS rose to $0.51, up from $0.41 in Q1 2024.

Headline financials

Total Revenue

$3.46B

Previous: $3.39B+2.2%
EPS

$0.51

Previous: $0.41+24.4%
Comparable Sales Growth

2.0%

No prior period
Total Store Square Footage

29.9M

No prior period
Capital Expenditures

-$83M

Previous: -$93M+10.8%
Free Cash Flow

-$223M

Previous: -$63M-254.0%
Net Income

$193M

Previous: $158M+22.2%
Operating Income

$260M

Previous: $205M+26.8%
Gross Profit

$1.45B

Previous: $1.4B+3.7%
Cash & Equivalents

$1.98B

Previous: $1.53B+29.0%
Total Assets

$11.6B

Previous: $10.9B+6.0%

Revenue & EPS history

Gap · Revenue · Quarterly

$3.46B

Q1 2025+2.2%vs Q1 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Gap · $4.04B total across 5 segments · Q3 2023

  • Old Navy Global
    $2.14B+1.5%
  • Gap Global
    $1.04B+0.2%
  • Banana Republic Global
    $517M+7.9%
  • Athleta Global
    $340M+6.3%
  • Other
    $4M

Forward guidance

Gap expects flat sales for Q2 FY25 and anticipates tariff pressures in the latter half of the year, with full-year operating income growing 8%-10%.

Tailwinds

  • Full-year net sales expected to grow 1% to 2%.
  • Full-year operating income expected to grow 8% to 10%.
  • Gross margin for Q2 expected to be similar to Q1 levels.
  • Operating expense to leverage slightly in Q2.
  • Continued cost discipline and brand momentum at Old Navy and Gap.

Headwinds

  • Tariffs could result in $100M to $150M in incremental costs.
  • Free cash flow remains negative due to seasonal effects.
  • Continued weak performance at Athleta with -8% comp sales.
  • Banana Republic net sales declined 3% YoY.
  • Inventory up 7% year-over-year due to earlier receipts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+1.4%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+0.5%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+33.8%

Q1 2024

Best reaction

-25.5%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025-14.5%-13.5%-9.5%
Q3 2025+7.4%+19.4%+21.5%
Q2 2025+1.7%+4.2%+1.4%
Q1 2025-19.8%-24.8%-21.6%
Q4 2024+18.6%+8.0%-1.8%
Q3 2024+18.3%+17.1%+16.9%
Q2 2024+0.0%+1.8%-4.5%
Q1 2024+33.8%+24.1%+10.3%
Q4 2023+9.8%+19.2%+27.2%
Q3 2023+26.9%+34.3%+51.5%
Q2 2023+5.9%+15.0%+3.0%
Q1 2023+9.6%+10.5%+14.2%
Q4 2022-9.1%-16.6%-21.8%
Q3 2022+13.5%+21.8%+7.6%
Q2 2022-0.9%-2.4%-14.5%
Q1 2022+8.9%+3.6%-11.2%
Q4 2021-2.2%-0.8%-7.2%
Q3 2021-25.5%-27.6%-27.8%
Q2 2021-3.5%-2.7%-13.0%
Q1 2021-1.7%-2.6%-0.1%
Q4 2020+6.1%+12.6%+16.3%
Q3 2020-17.1%-16.5%-21.6%
Q2 2020+3.0%+4.3%-4.3%
Q1 2020+3.0%+4.4%+2.8%
Q4 2019-1.5%-23.9%-17.1%
Q3 2019+4.1%+4.5%+8.0%
Q2 2019-0.2%-8.1%+1.4%
Q1 2019-10.3%-9.1%-13.7%
Q4 2018+16.4%+7.3%+3.2%
Q3 2018+1.5%+2.2%-1.5%
Q2 2018-7.9%-4.7%-13.7%
Q1 2018-12.0%-11.5%+4.4%
Q4 2017+8.2%+9.5%-1.2%
Q3 2017+9.3%+10.4%+24.8%
Q2 2017+0.4%+1.7%+24.0%
Q1 2017-5.4%-5.2%-2.8%
Q4 2016-0.7%-0.2%-6.4%
Q3 2016+2.8%+12.8%+2.9%
Q2 2016+5.6%+6.0%-8.2%
Q1 2016+5.4%
Q4 2015-0.2%
Q3 2015+6.3%
Q2 2015-5.6%
Q1 2015-1.7%
Q4 2014+3.3%
Q3 2014-2.7%
Q2 2014+5.4%
Q1 2014+1.4%
Q4 2013-0.4%
Q3 2013+0.2%
Q1 2013-1.0%
Q4 2012+4.2%
Q3 2012-0.1%
Q2 2012+4.0%
Q1 2012-5.1%
Q4 2011-1.2%
Q3 2011+0.5%
Q2 2011+0.8%
Q1 2010+2.3%
Q1 2011+3.9%
Q4 2010-0.7%
Q4 2008-0.7%
Q3 2009-3.3%
Q3 2010-3.3%
Q2 2009+0.3%
Q2 2010+0.3%
Q4 2009+0.3%

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