Gap — May 29, 2025 release

Fiscal 2025 Outlook The below fiscal 2025 outlook does not reflect the potential effect of tariffs, which are currently 30% on most imports from China and 10% on most imports from other countries. If these tariff rates remain, they could result in a gross estimated incremental cost of approximately $250 million to $300 million. The company currently has strategies to mitigate more than half of that amount. After considering these mitigation strategies, the company estimates a remaining net impact of about $100 million to $150 million to fiscal 2025 operating income, primarily weighted to the back half of the year. There is minimal impact expected to the second quarter fiscal 2025 gross margin outlook below. Full Year Fiscal 2025   FY 2025 Outlook FY 2024 Results Net sales 1% to 2% growth $15.1 billion Operating income 8% to 10% growth 1 $1.1 billion Net interest income Approximately $15 million $25 million Effective tax rate Approximately 26% 26% Capital expenditures Approximately $600 million $447 million Net store closures 2 Approximately 35 56 1 Represents expected full year fiscal 2025 underlying operating income growth which excludes an estimated $100 million to $150 million of potential net impact resulting from current tariffs as noted above. 2 Refers to company-operated stores. Second Quarter Fiscal 2025 Second Quarter Fiscal 2025 Outlook Net sales Approximately flat year-over-year Gross margin Similar to Q1'25 gross margin Operating expense (% of net sales) Leverage slightly year-over-year Webcast and Conference Call Information Whitney Notaro, Head of Investor Relations a