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 principles (GAAP) and are therefore referred to as non-GAAP financia