earnings
confidence high
sentiment positive
materiality 0.75
Gap Inc. Q3 net sales $3.9B +3% YoY, comp +5%; raises FY operating margin outlook to ~7.2%
GAP INC
2025-Q3 EPS reported
$1.69
revenue$11,130,000,000
- Net sales $3.9B, up 3% YoY; diluted EPS $0.62; comp sales +5% (7th consecutive quarter positive).
- Gross margin 42.4% (down 30bps); merchandise margin impacted ~190bps from tariffs, but underlying expansion.
- Brand comps: Old Navy +6%, Gap +7%, Banana Republic +4%, Athleta -11%.
- Raises FY25 net sales growth outlook to high end of prior 1.0%-2.0% range; operating margin now ~7.2% (prior 6.7%-7.0%).
- Free cash flow YTD $280M; ended quarter with $2.5B cash, up 13% YoY; inventory +5% due to tariffs.