From Yahoo Finance: 2025-05-30 10:12:00

Gap shares dropped 20% amid fears of profit squeeze from U.S. tariffs. Analysts predict up to $300 million in expenses, impacting margins through 2026. Stock trading at $22.44, with some brokerages cutting price targets. Gap aims to double U.S. cotton use by 2026 under new leadership, diversifying suppliers away from China.

President Trump’s trade policy could disrupt supply chains and elevate prices. Gap excludes tariff impact from outlook, unlike some retailers. Company exceeded first-quarter sales expectations, driven by full-price sales. Gap’s P/E ratio is 11.69, higher than competitors Abercrombie & Fitch and American Eagle Outfitters.

Read more: Gap shares slide as tariffs loom large over apparel maker’s turnaround plans