Gap Raises 2026 EPS Outlook to $2.30-$2.40 as Q1 Comparable Sales Rise 2%
Updated
Updated · TradingView · May 28
Gap Raises 2026 EPS Outlook to $2.30-$2.40 as Q1 Comparable Sales Rise 2%
3 articles · Updated · TradingView · May 28
Gap posted first-quarter adjusted EPS of $0.38 on $3.5 billion in sales, with comparable sales up 2% for a ninth straight positive quarter and net sales up 1%.
A 10% comp gain at the Gap brand drove much of the momentum, while Old Navy comps rose 1%, Banana Republic gained 2% and Athleta fell 11%.
Gross margin reached 40.5%, beating the company's outlook despite an estimated 200-basis-point tariff hit to merchandise margin; online sales slipped 2% and made up 38% of revenue.
For fiscal 2026, Gap lifted adjusted EPS guidance to $2.30-$2.40, citing about $80 million of expected tariff relief, even as it trimmed sales growth guidance to 1%-2%.
The company returned $464 million to shareholders in the quarter, including $401 million of buybacks and $63 million in dividends, underscoring confidence in its balance sheet.
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