What is the market's earnings forecast for The Gap next quarter?

What guidance did The Gap's management provide for the next earnings period?

What is The Gap's gross profit margin?

What is the revenue and EPS growth rate for The Gap year over year?

What is The Gap's latest dividend and current dividend yield?

What factors drove the changes in The Gap's revenue and profit?

What were the key takeaways from The Gap's earnings call?

What were the key takeaways from The Gap’s earnings call?

- **Revenue Beat**: 5% comp growth, with Old Navy (+6%), Gap (+7%), and Banana Republic (+4%) leading.
- **Gross Margin Resilience**: 42.4% despite tariffs, driven by AUR growth and lower discounting.
- **Beauty Expansion**: Old Navy Beauty pilot in 150 stores, targeting 2026 scaling.
- **Tariff Mitigation**: 2025 net impact 100-110bps; 2026 mitigation via sourcing and pricing.
- **Holiday Confidence**: Strong campaigns and supply chain readiness for peak demand.

**【CEO Summary Section】**
- **Revenue Growth**: Comparable sales up 5% YoY, highest in over 4 years, driven by Old Navy (+6%), Gap (+7%), and Banana Republic (+4%).
- **Brand Momentum**: Old Navy gains market share in denim, active, and kids; Gap denim ranks #6 in U.S.; Banana Republic improves men's and women's product.
- **Strategic Initiatives**: Expansion into beauty with Old Navy pilot; Disney and Anna Sui collaborations exceed expectations; holiday campaigns emphasize cultural relevance.
- **Operational Excellence**: $2.5B cash balance; AI-driven supply chain boosts productivity by 30%.

**【CFO Financial Commentary】**
- **Net Sales**: $3.9B (+3% YoY), with Old Navy ($2.3B +5%), Gap ($951M +6%), and Banana Republic ($464M +1%).
- **Gross Margin**: 42.4% (-30bps YoY) due to tariffs, but AUR growth and lower discounting offset 120bps.
- **Operating Margin**: 8.5% (-80bps YoY), with $0.62 EPS (-14% YoY) due to tariffs.
- **Updated Guidance**: Full-year net sales growth 1.7-2%, gross margin deleverage 50bps, operating margin 7.2%.

**【Q&A Highlights】**
- **AUR Trends**: Gap and Old Navy AUR growth driven by full-price sell-through; Q4 expects similar trends.
- **Store Strategy**: Closing 35 underperforming stores; testing new formats like Gap denim shops.
- **Tariff Mitigation**: 2026 tariffs to be offset by sourcing, pricing, and promotions; 2025 net tariff impact 100-110bps.
- **Athleta Update**: Reorganizing under new leadership; inventory aligned with lower sales trend.
- **Partnerships**: Collaborations (e.g., Sandy Liang, Anna Sui) attract new customers, 25% of collab shoppers new to brand.

The Gap, Inc. (GAP) Q3 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GAP

GAP fundamentals

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