Key Takeaways Gap's Q2 EPS of $0.57 topped estimates and rose 5.6% y/y, while revenues held steady.Comparable sales rose 1% y/y, led by Old Navy, Gap and Banana Republic strength.Athleta sales fell 11% y/y with comps down 9%, as the brand continues a reset amid weak demand.The Gap, Inc. (GAP) reported second-quarter fiscal 2025 results, wherein the bottom line surpassed the Zacks Consensus Estimate and grew year over year. Meanwhile, revenues missed the Zacks Consensus Estimate by a slight margin and were f ...

The Gap (GAP) Q2 2026 Earnings Call August 28, 2025 05:00 PM ET Company ParticipantsWhitney Notaro - VP & Head - IRRichard Dickson - CEO, President & DirectorKatrina O’Connell - EVP & CFOAlex Straton - MD - Equity ResearchMarni Shapiro - Managing PartnerBrooke Roach - VP - Equity ResearchLorraine Hutchinson - Managing DirectorDana Telsey - CEO & Chief Research OfficerConference Call ParticipantsMatt Boss - Equity Research AnalystIke Boruchow - MD & Senior Analyst - Retailing, Specialty Softlines & E-commerc ...

Financial Performance - Net sales reached $35 billion, a 2% increase year-over-year, with comparable sales also up by 2%[13] - Gross margin expanded by 60 bps compared to the previous year, reaching 418%[13][14] - Operating margin improved by 140 bps year-over-year to 75%[13][14] - Earnings per share (EPS) increased by 24% to $051, compared to $041 in the previous year[13] Brand Performance - Old Navy Global comparable sales increased by 3%[66] - Gap Global comparable sales increased by 5%[66] - Banana Republic Global comparable sales were flat at 0%[66] - Athleta Global comparable sales decreased by 8%[66] Financial Position - Cash, cash equivalents, and short-term investments totaled $22 billion, up 28% year-over-year[34] - Inventory increased by 7% year-over-year due to earlier receipts and faster transit times[34] - Capital expenditures for the quarter were $83 million[34] Capital Allocation - The company is targeting approximately $600 million in capital expenditures for fiscal year 2025[37] - $61 million was returned to shareholders in dividends during the quarter[39] - 4 million shares were repurchased for $70 million in the first quarter[39] Fiscal Year 2025 Outlook - Net sales are projected to grow by 1% to 2% year-over-year[43] - Operating income is expected to grow by approximately 8% to 10% year-over-year, excluding potential tariff impacts[43][44]