Connect with us

Business

Gap Q2 2026 earnings

Published

on

Gap Q2 2026 earnings

Gap on Thursday announced a new CEO for its Old Navy banner, effective Nov. 2, as the retailer tries to reinvigorate sluggish sales performance at the brand.

Michael Francis, who was appointed the chief customer officer at Old Navy in May, will take over the reins from current CEO Haio Barbeito, who will become an advisor to the company. Barbeito has held the position since 2022.

Gap CEO Richard Dickson told CNBC the move was “a planned and thoughtful transition” to better equip Old Navy for its next chapter.

“We’ve been working — from fixing fundamentals to building momentum and ultimately looking to accelerate growth, and so there’s not a change in strategy,” Dickson said in an interview. “We’re just going to continue to execute better, continuously improve our core business, while we drive some accelerators that we’re really excited about.”

Advertisement

Shares of Gap jumped 12% in extended trading Thursday.

In the company’s fiscal second-quarter earnings report, Old Navy posted net sales of $2.1 billion — down 4% year over year. Comparable sales were also down 4%, versus comparable sales growth of 2% during the same period last year. Wall Street analysts were expecting a decline of 2.4% for the most recent period, according to StreetAccount.

It marked Old Navy’s first negative same-store sales figure since the second quarter of 2023 and was due in part to “unanticipated slowdown in traffic,” the company said. The brand contributes nearly 60% to Gap’s overall revenue.

Dickson told CNBC that Old Navy specifically saw disappointing results from its summer marketing, which he said “lacked a direct product message.” But he added that the brand has already begun to see “significant improvement” in its traffic and sales this past month.

Advertisement

Incoming CEO Francis said in a statement the brand would “continue to sharpen our customer focus, strengthen the brand’s cultural relevance, enhance the customer experience across every touchpoint and build on the momentum already underway.”

Overall, Gap reported mixed results for its fiscal second quarter, beating analysts’ estimates for earnings per share but underperforming revenue expectations. Gap Inc. comparable sales were down 1% for the period, including a 3% year-over-year decline in in-store sales.

“Ultimately, our slight miss on total company was really due to Old Navy’s seasonal product assortment,” Dickson said. “We know we didn’t execute well on our seasonal product, but if there’s good news in this, seasonal is behind us.”

For the full fiscal year, Gap narrowed its net sales growth outlook from a range of between 1% and 2% to a range of between 1% to 1.5% due to the lag at Old Navy. Still, the company hiked its expectations for adjusted earnings per share from a range of $2.30 to $2.40 for the full year to a range of $2.35 to $2.45.

Advertisement

Here’s how the company performed in the quarter ended Aug. 1 compared with what Wall Street was expecting, according to a survey of analysts by LSEG:

  • Earnings per share: 52 cents adjusted vs. 48 cents expected
  • Revenue: $3.65 billion vs. $3.69 billion expected

Gap reported net income of $501 million, or $1.38 per share, compared with $216 million, or 57 cents per share, the prior year. Sales sank slightly to $3.65 billion from $3.73 billion in the year-ago period.

Adjusting for one-time items — in particular the impact of tariff refunds of approximately $512 million — Gap reported earnings per share of 52 cents.

“On balance, we’re running a very disciplined organization with a playbook that is working,” Dickson said. “These things take time. I think, pointing to Gap as the lead success story of our playbook, you can see the ability for us to actually deliver relevance and revenue, and we’re well on our way.”

At the namesake Gap banner, comparable sales soared 10% for the quarter — outpacing Wall Street expectations of 8.6% growth — and net sales jumped 9% to $844 million. The company attributed those gains to “culturally relevant storytelling” in categories across denim, fleece and kids and baby.

Advertisement

As for Gap’s other brands, Banana Republic saw its comparable sales up 3% for the quarter, with net sales reaching $478 million. Analysts were expecting comparable sales up 2%, according to consensus metrics from StreetAccount. The company said the brand “continued to make progress” in its assortment during the quarter.

And, Athleta’s comparable sales sank 12% for the quarter, hitting net sales of just $264 million. Gap said that Athleta “remains focused on disciplined execution to rebuild the brand profitably.”

The company also said a significant increase in gross margin during the fiscal second quarter was the result of a 11.4-percentage-point benefit from “expected recovery of tariffs.” Absent that tariff impact, Gap’s gross margin improved by 0.2% year over year.

Gap said it received $95 million of tariff refunds during the quarter and used the funds to lower the costs of some of its products. The remainder of its tariff refund is expected in the third quarter, the company said.

Advertisement

Dickson added that the company continues to see a “resilient but discerning” consumer with sales growth across all income cohorts.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

The Big Four Recession Indicators: Real Personal Income

Published

on

The Big Four Recession Indicators: Real Personal Income

The Big Four Recession Indicators: Real Personal Income

Continue Reading

Business

An Oil Catastrophe Was Averted in 2026. What If It Comes in 2027?

Published

on

An Oil Catastrophe Was Averted in 2026. What If It Comes in 2027?

An Oil Catastrophe Was Averted in 2026. What If It Comes in 2027?

Continue Reading

Business

Wedding stationers not standing still

Published

on

Wedding stationers not standing still

Stationery vendors are adapting to a changing market driven by tech and cost-of-living pressures.

Continue Reading

Business

Apple Confirms September 9 Keynote and Reveals Its Full Pre-Order Schedule

Published

on

Samsung Galaxy S27 Ultra Rumors Point to Unified Camera Design,

CUPERTINO, Calif. — Apple has officially confirmed its highly anticipated September event will take place Wednesday, Sept. 9, setting in motion a launch sequence expected to introduce the iPhone 18 Pro, iPhone 18 Pro Max and the company’s first foldable device.

Apple sent invitations to members of the press and select guests Wednesday, Aug. 26, confirming the keynote date alongside the tagline “Surprise and shine” and an accompanying image. The keynote is scheduled to begin at 10 a.m. Pacific time, 1 p.m. Eastern and 6 p.m. British time, and will be held at the Steve Jobs Theater on Apple’s Cupertino campus.

A date chosen around the calendar

This year’s scheduling carried unusual complexity due to how the calendar fell in 2026. Labor Day landed on Monday, Sept. 7, and Apple has historically avoided holding its iPhone event on the day immediately following the holiday, ruling out a Tuesday, Sept. 8 date. That left Wednesday, Sept. 9 as the most likely option, a prediction that multiple outlets, including Forbes and MacRumors, had made in the weeks leading up to Apple’s official confirmation.

Advertisement

The Sept. 9 date also matches the exact day Apple held its iPhone event in each of the past two years, extending a pattern of holding its flagship product reveal during the second week of September. Bloomberg’s Mark Gurman had also flagged the date in his Power On newsletter earlier this month, describing Apple’s preparations as being in full swing ahead of what he called a big event.

What’s expected on stage

The centerpiece of Wednesday’s keynote is expected to be the debut of the iPhone 18 Pro and iPhone 18 Pro Max, alongside Apple’s first foldable iPhone, a device widely viewed as the company’s most significant new hardware category in years. Reports have suggested the foldable device could start at around $2,000, with pricing potentially climbing past $2,500 for higher storage configurations.

Apple is expected to stick with familiar display sizes for the standard Pro lineup, with the iPhone 18 Pro featuring a 6.3-inch display and the iPhone 18 Pro Max featuring a 6.9-inch display, consistent with the current generation. Notably, Apple is not expected to release a standard iPhone 18 model alongside the Pro lineup this year; that device is anticipated to arrive separately in early 2027.

Advertisement

Beyond the phones, the event is expected to include the introduction of two new Apple Watch models. Apple has already addressed part of its fall hardware lineup separately, having unveiled new Mac computers on Tuesday, Aug. 25, ahead of the September keynote.

The pre-order timeline, with a notable shift

Perhaps the most closely watched detail surrounding this year’s launch has been the timing of pre-orders, given an unusual calendar conflict. Apple traditionally opens pre-orders on the Friday immediately following its September keynote. This year, however, that Friday falls on Sept. 11 — the 25th anniversary of the Sept. 11, 2001, terrorist attacks in the United States, a date Apple has respectfully avoided using for major announcements or sales activity in the past.

As a result, pre-orders for the iPhone 18 Pro lineup are widely expected to shift to Saturday, Sept. 12 instead. If Apple follows its typical pre-order timing pattern from past launches, orders would likely open at 5 a.m. Pacific, 8 a.m. Eastern and 1 p.m. British time that day.

Advertisement

Following the pre-order window, the new devices are expected to become available in stores and begin shipping to customers on Friday, Sept. 18 — one week after pre-orders open, consistent with Apple’s typical rollout cadence in recent years.

A launch two weeks in the making

Apple’s decision to send invitations on Aug. 26 also followed a pattern industry watchers had anticipated. The company has announced its annual iPhone event exactly two weeks in advance for four consecutive years, according to 9to5Mac’s Zac Hall, making late August the strongest predicted window for this year’s invitations even before they went out. That timing held true, with Apple issuing its formal invite precisely 14 days ahead of the Sept. 9 keynote.

Why this year’s event carries extra weight

Advertisement

This year’s launch arrives with added significance beyond the usual annual iPhone refresh. The event is expected to double as one of the final major keynotes overseen under Apple’s current leadership transition, with incoming Chief Executive John Ternus set to formally take over the role on Sept. 1, just over a week before the keynote takes the stage. Outgoing CEO Tim Cook is transitioning to the role of executive chairman after 15 years leading the company.

The introduction of Apple’s first foldable device alongside that leadership shift has raised the stakes considerably for what is typically a predictable annual product cycle, with analysts and industry watchers framing the September event as a pivotal moment both for Apple’s product lineup and for its next generation of corporate leadership.

With the keynote date now officially locked in, attention turns to the specifics Apple will reveal on stage Sept. 9, including final pricing, technical specifications for the foldable device, and confirmation of the broader software updates expected to accompany the new hardware. Apple has not released an official agenda beyond confirming the date, time and location of the event, meaning many of the details currently circulating remain based on analyst predictions and industry reporting rather than direct company confirmation.

For consumers planning to purchase the new devices, the coming weeks are expected to follow a now-familiar rhythm: an announcement on Sept. 9, pre-orders opening Sept. 12, and devices reaching customers’ hands by Sept. 18 — assuming Apple’s typical launch cadence holds for a third consecutive year.

Advertisement
Continue Reading

Business

ServiceNow, Inc. (NOW) Presents at Deutsche Bank 2026 Technology Conference Transcript

Published

on

OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript