Gap $GAP falls 14% as Q1 sales miss and FY2026 revenue guide narrows
Original: Gap shares tumble 14% as retailer cuts sales guidance after disappointing Old Navy performance View original →
14% was the stock move after Gap $GAP reported Q1 net sales of $3.5B and narrowed fiscal 2026 net sales growth to 1%-2%. The company raised EPS guidance, but the market reaction centered on a revenue miss and weaker Old Navy execution.
Gap's Q1 release put adjusted diluted EPS at $0.38, adjusted net income at $145M, and gross margin at 40.5%. CNBC reported that the shares fell 14% after the retailer cut sales guidance following disappointing Old Navy performance.
| Metric | Reported figure |
|---|---|
| Q1 net sales | $3.5B, +1% YoY |
| Comparable sales | +2% |
| Adjusted diluted EPS | $0.38 |
| FY2026 net sales guide | +1% to +2% |
The split matters for retail investors because cost control and tariff relief can support EPS while weaker traffic or assortment misses limit revenue growth. Athleta posted Q1 net sales of $270M, down 12%, and comparable sales down 11%, keeping brand recovery on the watch list. The next datapoint is Q2 guidance, especially Old Navy comps and whether gross-margin relief offsets softer demand.
Not investment advice. Verify all figures with primary sources before acting.
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