Key Stats for Gap Stock
- Pre-Market Price change for Gap stock: -6.5%
- $GAP Share Price as of Mar. 5: $27
- 52-Week High: $29
- $GAP Stock Price Target: $31
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What Happened?
Gap (GAP) stock dropped as much as 6% in after-hours trading after the company reported mixed Q4 results.
- Earnings came in at $0.45 per share, just a penny below the $0.46 analysts expected.
- Revenue hit $4.24 billion, matching estimates but not enough to excite investors.
- The results were messier than they look on the surface. Gross margin fell to 38.1%, weighed down by tariffs. That was slightly worse than what analysts had forecast.
- Net income dropped to $171 million, down from $206 million in the same quarter last year.
- A big part of the story was the weather. Historic winter storms in January forced around 800 temporary store closures at their peak.
- Old Navy, Gap’s largest brand, saw comparable sales rise just 3%, missing the 4.3% analysts were expecting.
CFO Katrina O’Connell acknowledged the storms hurt performance but noted that sales recovered quickly once the weather cleared.
Not everything disappointed.
- The Gap namesake brand was a clear standout, with comparable sales up 7%, well ahead of the 4.6% expected.
- Banana Republic also beat expectations with comps up 4%.
- Athleta remained the weak spot, with sales down 11% and comps falling 10%.
For fiscal 2026, management guided for revenue growth of 2% to 3% and adjusted EPS of $2.20 to $2.35. Both figures came in roughly in line with consensus, which wasn’t enough to move Gap stock higher.
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What the Market Is Telling Us About Gap Stock
Gap stock is being punished for guidance that met but didn’t beat expectations. After two years of steady progress under CEO Richard Dickson, investors are starting to expect more.
The tariff situation adds another layer of uncertainty.
Gap took a roughly 200 basis point hit to gross margin from tariffs in Q4. The company didn’t factor recent tariff changes into its 2026 outlook, saying it’s too early to plan around them.
That caution is reasonable, but it leaves the guidance looking conservative at best.
The longer-term story isn’t broken.
Gap has $3 billion in cash, is growing its core brands, and is expanding into new categories such as beauty and accessories.
But for now, Gap stock is reflecting the gap between steady progress and what the market was hoping to see.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
