From CNBC: 2025-05-29 18:52:00

Gap is facing potential tariffs of $100 million to $150 million, impacting its business. New 30% duties on imports from China could cost the company $250 million to $300 million. Gap aims to mitigate these costs by diversifying its supply chain and reducing exposure to China. CEO plans to buy more U.S. cotton to offset tariffs.

Gap reported fiscal first-quarter results above expectations. Earnings per share were 51 cents vs. 45 cents expected, with revenue at $3.46 billion vs. $3.42 billion expected. Net income was $193 million. Sales rose to $3.46 billion, up about 2% from a year earlier. Gap’s full-year sales growth is expected to be between 1% and 2%.

Old Navy saw sales of $2 billion, up 3% from last year, with comparable sales growing 3%. Gap brand sales were $724 million, up 5%, and comparable sales were up 5%. Banana Republic sales were down 3% to $428 million, while Athleta sales were down 6% to $308 million. Banana Republic is working on improving the brand, while Athleta is focusing on profitability and product improvements.



Read more at CNBC: Gap (GAP) earnings Q1 2025