Gap Reports Mixed Q2 Results with Strong Gap Brand Performance, Weakness at Old Navy
In Q2 2026, Gap (GAP) reported mixed financial results. Total net sales came in at $3.7 billion, a slight decline of 2% year over year, driven by underperformance at the Old Navy and Athleta brands. The Gap brand showed strong growth with a 9% increase in net sales and 10% comparable sales growth for its eleventh consecutive quarter. Old Navy's performance was weaker, reporting $2.1 billion in net sales—a 4% decline—due to challenges in women’s summer seasonal categories and lower store traffic. Athleta continued to struggle with a 12% drop in net sales as it works through turnaround efforts. Banana Republic showed modest improvement with both net sales and comparable sales up by about 1%. The company raised its full-year adjusted operating margin guidance from 7.3%-7.5% to 7.4%-7.6%, citing disciplined pricing, tariff mitigation actions, and cost controls.
Tickers: $GAP
Topics: financial_performance retail sales_growth