Gap Q4 Sales Rise 2% to $4.23B While EPS Drops 16.7% to $0.45
Gap posted Q4 EPS of $0.45, down 16.7% year-on-year, matching estimates, as net sales rose 2% to $4.23 billion with comps up 3%. Brand sales were led by Old Navy’s $2.3 billion (+3%) and Gap global’s $1.1 billion (+8%), while Athleta declined 11% to $354 million.
1. Q4 Financial Results
Gap reported Q4 earnings of $0.45 per share, down 16.7% year over year, in line with estimates. Net sales increased 2% to $4.23 billion, with comparable sales up 3%; gross margin contracted by 80 basis points to 38.1% due to tariff headwinds and merchandise costs.
2. Brand Performance Breakdown
Old Navy led the portfolio with $2.3 billion in net sales, up 3%, while Gap global sales climbed 8% to $1.1 billion. Banana Republic contributed $549 million (+1%), and Athleta sales fell 11% to $354 million. Online revenue grew 5%, accounting for 42% of total sales.
3. Financial Health and FY26 Outlook
Cash and short-term investments rose 28.4% to $3.0 billion, with free cash flow of $823 million. The board increased the quarterly dividend to $0.175 per share and authorized a new $1 billion buyback. For fiscal 2026, Gap forecasts 2–3% net sales growth and adjusted EPS of $2.20–2.35.