From Yahoo Finance: 2025-05-30 12:44:00

Gap CEO Richard Dickson remains confident in the retailer’s turnaround despite trade war challenges. While Gap beat sales and profit forecasts, it warned of a significant hit to operating profits due to tariffs, potentially costing $0.25 per share for the year. To navigate the trade uncertainty, Gap plans to reduce sourcing from China and increase American-grown cotton vendors. Analysts remain positive on Gap’s performance, with Citi analyst Paul Lejuez noting top-line consistency and cost discipline. Gap’s net sales increased by 2% year over year to $3.5 billion, with gross margin and earnings per share also surpassing estimates. Inventory levels rose 7% due to trade war effects, while same-store sales have increased for five consecutive quarters. The company’s total cash position rose by 28% to $2.2 billion, but Gap warns of potential tariff impacts costing $250 million to $300 million this year.



Read more at Yahoo Finance: The trade war has not stalled our turnaround