Gap Shares Rise Amid JPMorgan's Positive Outlook Under CEO Dickson's Leadership

Gap reported Q2 revenue of $3.73 bln, beating estimates, and EPS of 57 cents, topping consensus of 55 cents. CEO Richard Dickson's merchandising and marketing strategy is seen as a turning point for the company. JPMorgan analyst Matthew R. Boss reiterated an Overweight rating and raised the price target from $29 to $32.

Gap Inc. (NYSE: GAP) reported its fiscal second quarter (Q2) 2025 results on Thursday, August 28, 2025, with revenue of $3.73 billion, beating analysts' estimates of $3.74 billion. The company also reported earnings per share (EPS) of 57 cents, which exceeded the consensus estimate of 55 cents. These results reflect a strong performance driven by the company's merchandising and marketing strategies under CEO Richard Dickson.

The company's revenue growth was driven by its Old Navy and Banana Republic brands, which saw comparable sales increases of 2% and 4%, respectively. However, Athleta, the athleisure brand, saw a 9% decline in comparable sales, which dragged down the company's overall performance. Despite this, the company's gross margin came in at 41.2%, slightly below expectations of 41.9%.

CEO Dickson noted that the company is continuing to expect net sales growth of 1% to 2% for the fiscal year 2025. The company is also expecting sales to grow between 1.5% and 2.5% in the current quarter, which is better than the 2% that analysts had estimated.

JPMorgan analyst Matthew R. Boss reiterated an Overweight rating and raised the price target from $29 to $32, citing the company's improved merchandising and marketing strategy as a key factor in the positive results.

To mitigate the impact of higher U.S. tariffs, Gap is working with its suppliers, adjusting its sourcing, diversifying its supply chain, and taking targeted price increases where appropriate. The company does not expect the annualization of tariffs to cause further declines in operating income in 2026.

References:
1. [https://www.cnbc.com/2025/08/28/gap-gap-q2-2025-earnings.html](https://www.cnbc.com/2025/08/28/gap-gap-q2-2025-earnings.html)
2. [https://investorshub.advfn.com/market-news/article/15467/gap-q2-revenue-slightly-below-forecast-amid-athleta-softness-and-tariff-pressures](https://investorshub.advfn.com/market-news/article/15467/gap-q2-revenue-slightly-below-forecast-amid-athleta-softness-and-tariff-pressures)
3. [https://www.mitrade.com/insights/news/live-news/article-8-1081249-20250829](https://www.mitrade.com/insights/news/live-news/article-8-1081249-20250829)