Gap swings to FY26 Q2 net income of $501 million; net sales fall 2%
GAP•Management highlights growth initiatives
Management highlighted expansion in beauty and accessories, a revamped loyalty program, and continued technology investments.
Gross margin benefits from tariff recoveries
Gross margin widened 11.6 percentage points to 52.8%, including about $417 million of net IEEPA tariff recoveries.
Gap reports higher profit and wider margin in fiscal Q2
Gap posted Q2 fiscal 2026 net income of $501 million; diluted EPS was $1.38.
Operating income rose to $676 million; operating margin widened 10.7 percentage points to 18.5%.
Net sales fell 2% to $3.65 billion; comparable sales slipped 1%.
