Gap Q2 Earnings: Revenue Flat, EPS Beats Estimates

Gap reported Q2 revenue of $3.73 billion, up 0.1% YoY, beating the Zacks Consensus Estimate of $3.74 billion by 0.38%. EPS was $0.57, compared to $0.54 in the year-ago quarter. Key metrics include a 4% YoY increase in Banana Republic comparable store sales, a 2% YoY increase in Old Navy comparable store sales, and a 14% YoY increase in Gap comparable store sales.

Gap Inc. (NYSE:GAP) reported its second-quarter (Q2) financial results on Thursday, with net sales of $3.7 billion, up 0.1% year-over-year (YoY), beating the Zacks Consensus Estimate of $3.74 billion by 0.38%. Earnings per share (EPS) were $0.57, compared to $0.54 in the year-ago quarter [1].

The company's Athleta brand saw a 9% decrease in comparable sales, while Old Navy, Gap, and Banana Republic brands reported positive comparable sales for the quarter. Banana Republic's comparable store sales increased by 4%, Old Navy's by 2%, and Gap's by 14% YoY [1].

Operating income remained essentially flat at $292 million from $293 million a year ago, while net income rose to $216 million, up from $206 million in the year-ago period [1].

Gap Inc. expects a net sales growth estimate of 1.5% to 2.5% for Q3 and net sales growth in the range of 1% to 2% for fiscal 2025, considering the impact of tariffs [2].

The company's shares fell more than 1% after-hours trading following the report, closing at $21.68. Gap Inc. ended the second quarter with cash, cash equivalents, and short-term investments of $2.4 billion, an increase of 13% from the prior year [1].

References:
[1] https://wwd.com/business-news/retail/gap-inc-reports-positive-q2-comparable-sales-1238089688/
[2] https://www.investing.com/news/earnings/gap-q2-revenue-falls-short-amid-weakness-in-athleta-brand-tariff-impact-4215606