Gap Q4 EPS Misses by $0.01, Comparable Sales Up 3% and $1B Buyback
Gap’s Q4 EPS of $0.45 missed estimates by $0.01 and revenue of $4.23B fell short by $10M despite a 3% comparable sales gain and 5% online growth. The company approved a $1B share buyback, raised its quarterly dividend 6%, and guided FY26 EPS of $2.20–2.35 versus $2.32 consensus.
1. Q4 Financial Results and Stock Reaction
Gap reported Q4 EPS of $0.45 versus $0.46 expected and revenue of $4.23 billion against $4.24 billion forecasts, while comparable sales rose 3% and online sales grew 5% to represent 42% of net sales. Shares fell nearly 9.5% following the earnings release.
2. Brand Segment Performance
Old Navy net sales increased 3% to $2.3 billion with comparable sales up 3%, Gap brand net sales rose 8% to $1.1 billion with 7% comps growth, Banana Republic sales climbed 1% to $549 million with 4% comps growth, and Athleta sales declined 11% to $354 million with a 10% comps drop.
3. Cash Position and Shareholder Returns
Gap ended the period with $3.0 billion in cash, equivalents and short-term investments and gained board approval for a new $1 billion share repurchase program while increasing its quarterly dividend by 6% to $0.175 per share.
4. Fiscal 2026 Outlook
For fiscal 2026 the company targets adjusted EPS of $2.20 to $2.35 versus a $2.32 consensus and revenue of $15.70 to $15.86 billion versus a $15.75 billion consensus, and anticipates first-quarter revenue of $3.53 to $3.57 billion compared with a $3.53 billion estimate.