Gap navigates storms and tariff headwinds with mixed Q4 2025 results and growth plans
Gap posted a mixed Q4 2025: revenue of $4.24 billion and 45 cents per share, slightly missing on EPS as gross margin fell to 38.1% due to tariffs; net income was $171 million. Full-year guidance calls for 2%-3% sales growth and adjusted EPS of $2.20-$2.35, aided by a $313 million legal settlement. Brand results were solid at Gap and Old Navy (Gap brand up 8% in sales with 7% comps, Old Navy up 3% comps), Banana Republic up 4% comps, while Athleta fell 11% in revenue and 10% in comps. CEO Richard Dickson says the turnaround is pivoting to growth through core apparel, plus expansions into beauty, accessories, and a fashion/entertainment platform, supported by a roughly $3 billion cash pile and potential tariff-driven upside if rates shift.
