Gap Slashes Annual Sales Forecast Amid Weak Consumer Spending, Misses Q1 Revenue
GAP sits 32% above its 52-week low of $18.685.
Summary
Gap Inc. cut its fiscal 2026 sales growth forecast to 1-2% from a prior 2-3% and reported first-quarter sales of $3.50 billion, missing analyst estimates. The company also guided for weak second-quarter sales, expecting flat to down 1% compared to analyst expectations of 2.1% growth. This revised outlook reflects increasing pressure on consumer discretionary spending, a trend also noted by peer Tapestry (TPR). While Gap raised its full-year adjusted profit forecast due to an expected $80 million in tariff relief, the underlying demand weakness for its brands, including Old Navy and Athleta, is a significant concern for future growth. The company did return $464 million to shareholders in Q1, executing on its $1 billion share repurchase authorization announced in March.
At the time of this announcement, GAP was trading at $24.73 on NYSE in the Trade & Services sector, with a market capitalization of approximately $9.1B. The 52-week trading range was $18.69 to $29.36. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.