NYSE$GAP

Gap, Inc. · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Gap delivered solid Q2 2025 results with positive comparable sales and strong brand momentum across Old Navy, Gap, and Banana Republic.

Gap Inc. maintained flat sales YoY at $3.73B, while achieving its sixth straight quarter of positive comparable sales and exceeding profit expectations. Online sales grew and key brands performed well, though Athleta continued to face challenges.

  • Net sales were $3.73B, flat YoY, with online sales up 3% and representing 34% of total sales.
  • Comparable sales grew 1%, led by Old Navy (+2%), Gap (+4%), and Banana Republic (+4%).
  • EPS rose to $0.57, a 6% increase YoY, with net income at $216M.
  • Gap ended the quarter with 2,486 company-operated stores and 29.7M square feet.

Headline financials

Total Revenue

$3.73B

Previous: $3.72B+0.1%
EPS (adj)

$0.57

Previous: $0.54+5.6%
Capital Expenditures

-$181M

Previous: -$182M+0.5%
Free Cash Flow

$127M

Previous: $397M-68.0%
Net Income

$216M

Previous: $206M+4.9%
Operating Income

$292M

Previous: $293M-0.3%
Gross Profit

$1.54B

Previous: $1.58B-3.0%
Cash & Equivalents

$2.19B

Previous: $1.9B+15.5%
Total Assets

$12.1B

Previous: $11.5B+5.5%

Revenue & EPS history

Gap · Revenue · Quarterly

$3.73B

Q2 2025+0.1%vs Q2 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 reaffirmed its FY25 outlook, projecting low single-digit net sales growth and margin pressures from tariffs in Q3.

Tailwinds

  • FY25 net sales expected to grow 1%–2%
  • Operating margin outlook reaffirmed at 6.7%–7.0%
  • Gap brand achieved 7th consecutive quarter of positive comps
  • Strong performance from Old Navy and Banana Republic
  • Technology investments to support long-term growth

Headwinds

  • Q3 gross margin expected to deleverage by 150–170 bps
  • Athleta comparable sales declined 9%, sales down 11% YoY
  • Inventory up 9% YoY due to tariffs and accelerated receipts
  • Q3 operating expenses expected to slightly deleverage
  • Tariff impacts estimated at 200 bps for Q3 gross margin

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 Q2 2025

Historical avgQ2 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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