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Nov 01, 2025
Gap Q3 2025 Earnings Report
Gap reported solid third quarter results with revenue and EPS beating expectations.
Key Takeaways
Gap delivered strong Q3 results driven by positive comparable sales across key brands and improved operational performance, boosting their full-year outlook.
Net sales reached $3.94B, up 3% YoY.
EPS came in at $0.62, with net income of $236M.
Old Navy, Gap, and Banana Republic all posted positive comparable sales.
The company raised its full-year operating margin outlook.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Gap raised its FY2025 guidance, expecting stronger operating margin and net sales at the high end of the previous range.
Positive Outlook
- Full-year net sales growth outlook raised to 1.7%-2.0%
- Operating margin now expected at ~7.2%
- Positive momentum in key brands expected to continue
- Effective inventory management supporting margin expansion
- Raised FY25 net interest income forecast to $20M
Challenges Ahead
- Tariffs expected to impact margins by 100-110 bps
- Athleta continues to underperform with double-digit sales decline
- Gross margin declined 30 basis points YoY
- Merchandise margin impacted by 190 bps due to tariffs
- Overall operating expenses increased to $1.3B
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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