Gap falls as annual sales forecast cut; American Eagle drops despite quarterly beat

The Gap

28/05/2026 22:35

** Shares of apparel retailer Gap GAP.N fall ~14% to $21.54 in after-hours trading; apparel maker American Eagle AEO.N drops ~11% to $16.05 
** GAP cuts fiscal 2026 sales forecast to growth of 1%-2% from 2%-3% earlier, citing pressured discretionary spending
** Reports Q1 adj. profit of $0.38/shr vs analysts' average estimate of $0.37/shr - LSEG data
** Co's quarterly revenue of $3.50 billion misses expectations of $3.52 billion
** GAP expects fiscal 2026 sales growth of 1%-2%, compared with prior forecast of 2%-3%
** AEO reports Q1 adj. profit of $0.14/shr vs analysts' average estimate of $0.12/shr - LSEG data
** Its quarterly revenue of $1.20 billion beats expectations of $1.19 billion
** Maintains full-year sales forecast, signalling cautious consumer demand
** Including session's move, GAP shares down ~2%, AEO down ~32% YTD

 (Reporting by Sahil Pandey in Bengaluru)
 ((Sahil.Pandey@thomsonreuters.com))