Gap Inc. reported Q2 adjusted EPS of $0.52, compared with the IBES estimate of $0.48.
Q2 comparable sales fell 1%.
Q2 sales were $3.65 billion, versus the IBES estimate of $3.69 billion.
The company said it got refunds of $95 million and related interest income of $5 million in Q2, with the remaining refunds and related interest income expected in Q3.
In Q2, it recorded a $417 million adjustment to cost of goods sold related to net IEEPA tariff recovery.
Gap raised its FY net sales outlook to up 1% to 1.5%, from a prior forecast of up 1% to 2%.
The company sees Q3 net sales up 1.5% to 2.5%.
It expects Q3 gross margin up about 25 to 75 basis points.
Gap now expects FY adjusted EPS of about $2.35 to $2.45, versus a prior forecast of about $2.30 to $2.40.
The company said FY adjusted gross margin is expected to be up slightly year over year.
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