Gap's Sales Rise Despite Tariff-Related Cost Concerns
TL;DR
Gap announced that U.S. tariffs will cost it $250-$300 million but excluded this impact from its forecast, leading to a 16% drop in shares after hours. The company plans to mitigate over half of the tariff costs and maintains its sales and operating income growth forecasts for 2025, despite the tariff-related challenges affecting margins and supply chain costs. Gap's first-quarter revenue exceeded estimates, driven by increased sales at Old Navy and other brands.
- Gap's quarterly sales beat on strong demand for Old Navy, namesake brands Yahoo Finance
- Gap shares plummet as retailer says tariffs could cost between $100 and $150 million CNBC
- Gap Stock Falls After Retailer Forecasts Flat Sales, Outlines Tariff Costs WSJ
- Tariffs will cost Gap up to $300 million CNN
- Gap Sales Beat Expectations, Powered by Growth at Old Navy Bloomberg.com
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