Gap Q1 Revenue Flat at $3.5B, Misses Estimates; Shares Drop as Old Navy Weighs (NYSE:GAP)

Gap Inc. (NYSE:GAP) reported first-quarter revenue of $3.50 billion on May 29, 2026, unchanged from a year earlier and below Wall Street forecasts, sending shares down 14.6% to $21.32 from $24.99 before the release. Non-GAAP earnings per share of $0.38 matched analyst expectations. Results reflected uneven brand performance. The namesake Gap brand delivered standout growth, while Old Navy underperformed in seasonal categories such as women’s dresses. CEO Richard Dickson noted “varied” results at the brand level, citing differing stages of transformation. Margin gains were supported by lower discounting and improved inventory management, with strength in denim, activewear, and kids offsetting seasonal softness. Management issued a cautious revenue outlook, citing persistent headwinds at Old Navy and a slower rebuild at Athleta. CFO Katrina O’Connell said approximately half of an $80 million tariff-relief benefit will serve as a buffer against elevated fuel costs. The company plans to roll out beauty and accessories offerings and invest in technology to sustain margins.