The Gap, Inc. shares fall 1.75% premarket after reporting lower-than-expected comparable sales and margin squeeze from U.S. tariffs.

The Gap, Inc. is down 1.75% in premarket trading. The company reported second-quarter financial results, with net sales flat versus last year and diluted earnings per share up 6%. However, comparable sales were below Wall Street estimates due to customers pulling back on discretionary spending, and U.S. tariffs are expected to squeeze margins in the current quarter. Additionally, inflationary prices and trade policy uncertainty have challenged the company's turnaround efforts.