Gap Stock Plunges After Q1 Results, Warns Tariffs Could Dent FY25 Revenue By $150 Million

Gap reported earnings of 51 cents per share for the quarter, surpassing the consensus estimate of 45 cents, according to Benzinga. Revenue reached $3.46 billion, beating the expected $3.42 billion. CEO Richard Dickson said Gap exceeded financial expectations and gained market share for the ninth straight quarter. Dickson said Gap achieved positive comp sales for the fifth straight quarter, driven by strong performance from Gap and Old Navy. Gap reaffirmed its fiscal 2025 revenue guidance of $15.25 billion to $15.4 billion, in line with estimates. The company warned that existing tariff rates could add $250 million to $300 million in gross costs.