Gap slightly misses Q4 sales estimates, announces $1 bln buyback

GAP

05/03/2026 21:26

Overview

Apparel retailer's Q4 net sales slightly missed analyst expectations, comparable sales rose 3%

Company announced new $1 bln share repurchase authorization

Full year operating income reached $1.1 bln, exceeding company's outlook

Outlook

Gap Inc. expects fiscal 2026 net sales to grow 2% to 3% year-over-year

Company anticipates fiscal 2026 adjusted EPS of $2.20 to $2.35

Gap Inc. projects fiscal 2026 capital expenditures of approximately $650 mln

Result Drivers

ONLINE SALES GROWTH - Online sales rose 5% in Q4, contributing to overall net sales growth

BRAND PERFORMANCE - Gap and Old Navy showed positive comparable sales growth, indicating successful customer engagement strategies

TARIFF IMPACT - Merchandise margin declined 90 bps due to tariffs, affecting gross margin

Company press release: ID:nPn6hKStFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Slight Miss*
$4.24 bln
$4.24 bln (15 Analysts)
Q4 EPS
$0.45
Q4 Net Income
$171 mln
Q4 Operating Income
$229 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

Wall Street's median 12-month price target for Gap Inc is $31.00, about 11.8% above its March 4 closing price of $27.74

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)