Gap Inc

Latest Results (15.11.2025):

Gap Inc. reported its financial results for the second quarter of fiscal 2025, demonstrating stability in net sales at $3.7 billion compared to last year while marking the sixth consecutive quarter of positive comparable sales. The company highlighted a 6% increase in diluted earnings per share to $0.57, along with a strengthened liquidity position evidenced by cash, cash equivalents, and short-term investments reaching $2.4 billion – a 13% jump over the prior year. Gap Inc. reaffirmed its fiscal 2025 net sales growth outlook and provided updated global brand performance insights.

Revenue & Sales

The company’s net sales remained flat year-over-year at $3.7 billion, with comparable sales up 1% against last year. Online sales grew 3%, contributing 34% of overall revenue, while store sales experienced a slight 1% decrease. These results underscore steady traffic and execution across its retail portfolio.

Profitability Metrics

Gap Inc. delivered a diluted EPS of $0.57, reflecting a 6% increase from the prior year. Operating income reached $292 million with an operating margin of 7.8%, despite facing pressure on gross and merchandise margins, which decreased by 140 and 150 basis points respectively compared to last year.

Liquidity & Balance Sheet

The company ended the quarter with a robust liquidity position, boasting $2.4 billion in cash, cash equivalents, and short-term investments – a 13% improvement over the previous year. Additionally, free cash flow was reported at $127 million, supporting ongoing capital allocation through dividends and share repurchases.

Guidance & Strategic Outlook

Gap Inc. reaffirmed its fiscal 2025 net sales growth outlook, underpinned by continued performance improvements across its key brands. The firm’s disciplined approach to transformation and capital allocation, in conjunction with global brand initiatives and consistent operational execution, sets a positive tone for sustained shareholder value creation in the coming quarters.