Gap shares plunge after Old Navy weakness and sales guidance cut
Gap Inc. shares fell over 13-17% after reporting mixed Q1 results and cutting full-year sales guidance to 1-2% growth, down from 2-3%. Old Navy’s comparable sales grew only 1% (expected 3%), hurt by weak women’s dress and swim assortments. The Gap brand posted 10% growth, but Athleta fell 11%. Despite the revenue miss, Gap raised adjusted EPS guidance to $2.30-$2.40, citing tax benefits. Analysts downgraded the stock, citing tariff and fuel cost headwinds.
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Gap Inc. Cuts Sales Outlook After Q1 Miss, Shares Drop 17%
Gap Inc. reported mixed first-quarter results, missing Wall Street earnings and revenue expectations for the second consecutive quarter. Adjusted EPS came in at $0.38, down from $0.51 a year ago and a penny below estimates. Revenue rose 1% to $3.5 billion, falling $28 million short of analyst forecasts. The company lowered its full-year sales outlook due to weaker-than-expected performance at its Old Navy brand, causing shares to plunge over 17%. However, Gap posted its ninth consecutive quarter of positive comparable sales growth, with the namesake Gap brand delivering 10% comps growth and Banana Republic extending its positive comps streak to four quarters. Despite the lowered sales forecast, the company raised its full-year earnings outlook, citing favorable assumptions for interest income, taxes, and share count. CEO Richard Dickson noted uneven performance across the company's portfolio, reflecting different stages of transformation and brand-specific dynamics.
Yahoo FinanceGap shares tumble after cautious Q2 outlook overshadows solid first-quarter results
Gap Inc. shares fell over 16% after the company issued a weaker-than-expected second-quarter sales outlook and trimmed its full-year revenue forecast, despite solid first-quarter results. First-quarter revenue was $3.5 billion, up 1% year-over-year but slightly below analyst estimates. Comparable sales rose 2%, missing the 3.1% consensus, though gross margin of 40.5% exceeded expectations. Adjusted EPS of $0.38 beat estimates by $0.01. The sharp decline was driven by Q2 guidance for flat to down 1% net sales, well below the expected 2.1% gain. Full-year net sales growth forecast was lowered to 1%-2% from 2%-3%. Performance varied by brand: Gap brand posted a 10% comparable sales gain, Banana Republic rose 2%, Old Navy gained 1%, and Athleta fell 11%. Jefferies maintained a constructive long-term view but lowered its price target to $29, citing tariff and fuel cost headwinds. Gap ended the quarter with $2.6 billion in cash and returned $464 million to shareholders.
Yahoo FinanceGap Stock Falls on Weak Women's Dress Sales at Old Navy
Gap Inc. shares dropped 15% in premarket trading on May 29, 2026, after the company slashed its full-year sales outlook due to poor performance in women's dresses at its Old Navy division. CEO Richard Dickson acknowledged the company 'did not have the right fashion and value equation' for dresses in the first quarter, with challenges persisting into Q2. The weakness overshadowed strong results at the namesake Gap brand, which posted a 10% same-store sales increase driven by denim and fleece, and continued improvement at Banana Republic. However, Athleta continued to struggle with an 11% same-store sales decline. JPMorgan analyst Matt Boss downgraded Gap stock from Overweight to Neutral, citing a mixed portfolio of results. Despite the sales guidance cut, Gap raised its full-year profit outlook, now expecting adjusted EPS of $2.30 to $2.40.
Yahoo FinanceOld Navy Stumbles, Sending Gap Shares Lower
Gap Inc. shares fell approximately 14% in after-hours trading on May 28, 2026, after the apparel retailer cut its full-year revenue outlook and reported slowing sales at its Old Navy chain. The company now expects revenue to increase 1% to 2% for the year, down from its prior forecast of 2% to 3% growth. First-quarter sales rose 1% to $3.5 billion, slightly below the $3.52 billion analysts had expected. The disappointing results from Old Navy, a key brand for Gap, drove the negative market reaction and suggest challenges in the retailer's core business segment.
Yahoo FinanceGap shares tumble 13% as retailer cuts sales guidance after disappointing Old Navy performance
Gap Inc. shares fell more than 13% in extended trading after the retailer reported mixed fiscal first-quarter results and cut its full-year sales guidance. The company missed revenue expectations of $3.52 billion, reporting $3.50 billion, while adjusted earnings per share of $0.38 beat estimates by a penny. The primary drag was Gap's largest brand, Old Navy, where comparable sales grew only 1% against an expected 3%. CEO Richard Dickson told CNBC the weakness was due to a spring and summer assortment that failed to resonate with shoppers, particularly in dresses and swim shorts, rather than broader macroeconomic issues. Gap now expects companywide sales growth of 1% to 2%, down from 2% to 3%. However, the company raised its adjusted earnings guidance to $2.30-$2.40 per share, citing tax benefits and interest income. Other brands showed mixed results: Gap namesake comparable sales surged 10%, Banana Republic grew 2% (below 4% expected), and Athleta comparable sales fell 11%.
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