Gap is expected to report year-over-year declines in both revenues and earnings when it releases second-quarter fiscal 2026 results on Aug. 27. The Zacks Consensus Estimate pegs revenues at $3.7 billion, down 0.6% from the year-ago quarter, and earnings at 50 cents per share, down 12.3%. The company's Gap brand likely benefited from stronger product relevance and effective storytelling, while Old Navy was a key drag due to weak seasonal categories like dresses, swim, and shorts. Banana Republic showed improving consistency, but Athleta remained in a rebuilding phase and likely pressured consolidated sales. Gap expects net sales to be flat to down 1% and gross margin flat to down 50 basis points, with operating expenses deleveraging 110-120 basis points from 33.4% a year earlier.
The Gap, Inc.Expected declines in Q2 revenues and earnings, with guidance for flat to down sales and margin pressure.
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