Gap Shares Jump 15% on Q2 Earnings Beat and Raised Outlook

Earnings

โดย Zacks Investment Research·

Summary · why it matters

Gap's shares surged nearly 15% in after-hours trading after the company reported second-quarter adjusted earnings of 52 cents per share, beating the Zacks Consensus Estimate of 50 cents, despite a 2% revenue decline to $3.65 billion. Comparable sales fell 1%, but gross margin strength drove profitability, with the Gap brand posting a 10% comparable-sales increase while Old Navy and Athleta declined 4% and 12%, respectively. Adjusted gross margin, excluding the tariff recovery benefit, was 41.4%, up 20 basis points year over year. The company updated its fiscal 2026 outlook, now expecting net sales growth of 1-1.5%, and raised its adjusted operating margin guidance to 7.4-7.6% and adjusted EPS to $2.35-$2.45. Gap also returned $262 million to shareholders during the quarter through buybacks and dividends.

The Gap, Inc. ▲