Gap Inc. posts modest sales growth, announces $1B buyback as storms and Athleta drag profit

Gap Inc. reported fiscal 2025 results showing modest top-line growth and measures to return cash to shareholders. Full-year net sales rose 2% year‑over‑year, with comparable sales up 3%—the company’s eighth consecutive quarter of positive comparable-store sales.

For the full year Gap delivered $1.1 billion in operating income and a 7.3% operating margin, beating its outlook, and generated $1.3 billion in operating cash flow. The company also authorized a new $1 billion share repurchase program.

Quarterly earnings came in at $0.45 per share, matching consensus estimates but below last year’s $0.54 per share, and overall profit declined. Management said historic winter storms led to roughly 800 temporary store closures, which weighed on results and contributed to missing on the bottom line.

Brand-level performance was mixed. Athleta remains a drag, with same-store sales down about 10% as the company works on rebuilding the brand. Old Navy and other banners were affected by the storm-related closures. CEO Richard Dickson said the company is ready to build on momentum and scale new growth initiatives.

Gap provided a fiscal 2026 outlook in its release, while emphasizing cash generation and the new buyback as part of its capital allocation priorities.

Profit declined because quarterly earnings per share dropped to $0.45 from $0.54 a year earlier, driven in part by a weak performance at Athleta (same-store sales down about 10%) and roughly 800 temporary store closures caused by historic winter storms that hit sales.

Gap’s board approved up to $1 billion to buy back the company’s shares. Buybacks reduce the number of shares outstanding and are a way to return cash to shareholders, but the company did not provide a detailed timeline for repurchases.

Athleta is the main underperformer, with same-store sales down about 10%. Other brands showed mixed results; overall comparable sales were positive for the company for the eighth consecutive quarter, but weather-related store closures weighed on near-term performance.

Investors should monitor Athleta’s turnaround progress, the company’s execution of new growth initiatives, the pace and impact of the share buyback, and any updates on how weather-related disruptions affect future quarters.

CNBC

Gap's fiscal fourth quarter results missed on the bottom line after historic winter storms led to around 800 temporary store closures, the company said. CEO Richard Dickson told CNBC that Gap is ready to build on its momentum and start scaling new growth initiatives.

PRNewsWire

2025 net sales grew 2% versus last year, at high end of outlook; comparable sales up 3% 8th consecutive quarter of positive comparable sales Delivered full year operating income of $1.1 billion; operating margin of 7.3%, exceeded outlook Generated $1.3 billion in operating cash flow for the year Ann...

WSJ

The apparel company behind Old Navy, Banana Republic and its namesake brand said same-store sales fell 10% at Athleta, where the company said it remains focused on rebuilding the brand.

Market Watch

The smallest of Gap's brands continues to be a flash point for investors.

Zacks Investment Research

Gap (GAP) came out with quarterly earnings of $0.45 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.54 per share a year ago.

Zacks Investment Research

While the top- and bottom-line numbers for Gap (GAP) give a sense of how the business performed in the quarter ended January 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Seeking Alpha

The Gap remains a soft 'buy' as valuation is attractive despite recent revenue misses and after-hours stock decline. GAP shows strong comparable sales growth in core brands, effective store format innovation, and disciplined cost management, though Athleta underperforms. Tariff headwinds will pressu...

Benzinga

Gap, Inc. (NYSE: GAP) shares are trading lower Friday after the company reported worse-than-expected fourth-quarter financial results on Thursday after the market closed.

Proactive Investors

Gap Inc (NYSE:GPS) shares fell nearly 14% after the retailer reported fourth-quarter results that came in slightly below Wall Street expectations. The apparel company posted earnings per share of $0.45, missing the $0.46 consensus estimate, while revenue totaled $4.23 billion, slightly below analyst...

Zacks Investment Research

GAP's Q4 results are in line with estimates. Revenues rise 2% Y/Y, powered by Old Navy, Gap and Banana Republic comps growth despite margin pressure.

Seeking Alpha

The Gap, Inc. faces near-term margin pressure from 15% global tariffs despite strong sales and positive comps across most brands. Old Navy and the core Gap brand drive robust comp growth, though Athleta remains a weak spot with declining sales. Gross margins declined to 38.1% in Q4, but strong free...

The Motley Fool

Apparel retailer Gap's fourth-quarter results and forward-looking guidance were in-line with expectations. Simply meeting expectations amid the company's turnaround efforts, however, isn't quite good enough for investors right now.

Bloomberg Markets and Finance

Gap reported fourth-quarter sales and profit that came in slightly below expectations, as two of its apparel chains underperformed. But CEO Richard Dickson says it was a successful quarter and they have a "fantastic transformation story" to tell.

Fast Company

Gap stock is plummeting this morning in early trading after the company reported its fourth-quarter results after the bell yesterday. As of this writing, shares of Gap Inc. (NYSE: GAP) are down more than 12%, and its recent temporary store closures are partly to blame for that.

Forbes

Gap Inc., a worldwide apparel retailer that includes brands such as Old Navy, Gap, and Athleta, experienced a significant decline in its stock on high trading volume following the release of its Q4 earnings. Although Q4 results mostly matched expectations and the full-year 2026 guidance was in line,...

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