- Earnings Beat: The Gap, Inc. (NYSE:GAP) reported an earnings per share (EPS) of $0.52, exceeding analyst estimates of $0.48.
- Revenue Miss & Brand Weakness: Quarterly revenue of $3.65 billion fell short of estimates, primarily due to weakness in the Old Navy brand.
- Raised Profit Forecast: Despite revenue challenges, Gap raised its annual profit forecast, driven by momentum in its namesake brand and strategic leadership changes at Old Navy.
The Gap, Inc. (NYSE:GAP) is a global apparel retailer with a portfolio of brands including its namesake, Old Navy, Banana Republic, and Athleta. On August 27, 2026, Gap reported an earnings per share (EPS) of $0.52, which surpassed the analyst consensus estimate of $0.48.
As highlighted by Zacks, the $0.52 EPS beat their specific estimate of $0.50 per share. However, this result is a decrease compared to the $0.57 per share the company earned in the same quarter of the previous year, indicating a slight decline in year-over-year profitability.
The company's revenue for the quarter was $3.65 billion, falling just short of the estimated $3.69 billion. This revenue miss is connected to weakness within its Old Navy brand. As highlighted by the Wall Street Journal, this weakness led Gap to cut its overall sales outlook.
Despite some challenges, Gap raised its annual profit forecast, citing sustained momentum in its namesake brand, as highlighted by Reuters. To address the struggles at Old Navy, the company has appointed retail veteran Michael Francis as the brand's new chief executive.
From a valuation standpoint, Gap has a price-to-earnings (P/E) ratio of 6.08 and a price-to-sales ratio of 0.49. The company's financial health is reflected in its current ratio of 1.82 and a debt-to-equity ratio of 1.45, which measures its financial leverage.
