Gap falls on quarterly comparable sales miss, forecasts weaker annual margin growth

GAP

28/08/2025 22:09

** Shares of apparel maker Gap GAP.N fall 3% to $21 in extended trading

** Company's Q2 comparable sales rises 1% year-over-year, missing estimates of 2.26% growth, according to data compiled by LSEG

** GAP forecasts a weaker annual operating margin growth, driven by impacts from tariffs on imports of goods to the United States

** Company now expects annual operating margin between 6.7% and 7%, including a tariff impact in the range of 100 to 110 basis points, compared with a margin of 7.4% in 2024

** GAP reports Q2 net sales of $3.73 billion, almost in line with analysts' average estimate

** Up till last close, stock down 8.3% YTD

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))