Gap — Aug 28, 2025 release

Full Year Fiscal 2025   Current FY 2025 Outlook FY 2024 Results Net sales 1% to 2% growth $15.1 billion Operating margin 6.7% to 7.0% including an estimated 100-110 bps of net tariff impact 7.4% Net interest income Approximately $15 million $25 million Effective tax rate Approximately 27% 26% Capital expenditures Approximately $500 to $550 million $447 million Net store closures 1 Approximately 35 56 Third Quarter Fiscal 2025 Q3 2025 Outlook Q3 2024 Results Net sales 1.5% - 2.5% growth $3.8 billion Gross margin Approximately 150 to 170 bps of deleverage including an estimated 200 bps of net tariff impact 42.7% Operating expense (% of net sales) Slight deleverage due to shift in timing of investments 33.4% 1 Refers to company-operated stores. Webcast and Conference Call Information Whitney Notaro, Head of Investor Relations at Gap Inc., will host a conference call to review the company’s second quarter fiscal 2025 results beginning at approximately 2:00 p.m. Pacific Time today. Ms. Notaro will be joined by President and Chief Executive Officer, Richard Dickson and Chief Financial Officer, Katrina O’Connell. A live webcast of the conference call and accompanying materials will be available online at investors.gapinc.com. A replay of the webcast will be available at the same location. Non-GAAP Disclosure This press release and related conference call include financial measures that have not been calculated in accordance with U.S. generally accepted accounting principl