The Gap, Inc.

Gap Inc. delivered a confident third quarter of fiscal 2025, with results that cleared Wall Street's bar on both the top and bottom lines and gave management enough runway to raise its full-year outlook. The apparel retailer posted revenue of $3.94 billion, up 3.0% year-over-year and ahead of the $3.90 billion consensus, while diluted EPS of $0.62 beat the $0.5872 estimate by 5.59% — the seventh consecutive quarter of positive comparable sales underscoring that the brand portfolio's reinvigoration is more than a short-lived bounce. The critical engine behind the beat was broad-based comp momentum: Old Navy grew comps 6%, the Gap brand extended its own streak to eight straight positive quarters at 7%, and even a resurgent Banana Republic posted 4% comp growth. Athleta remained a drag, with net sales falling 11%, though management signaled the reset will take time. Looking ahead, the company guided full-year operating margin to approximately 7.2% — up from a prior range of 6.7% to 7.0% — even as an estimated 100–110 basis points of net tariff headwinds loom over the back half.