Gap — Mar 5, 2026 release

For the first quarter, the company expects reported operating expense leverage. All fiscal 2026 outlook measures provided below exclude the impact of these items. Full Year Fiscal 2026   Full Year Fiscal 2026 Outlook Full Year Fiscal 2025 Results 1 Net sales Up 2% to 3% year-over-year $15.4 billion Gross margin Flat to up slightly year-over-year 40.8% Adjusted operating expense (% of net sales) About flat year-over-year 33.5% Adjusted operating margin About 7.3% to 7.5% 7.3% Net interest income Approximately $10 million to $15 million $17 million Effective tax rate Approximately 27% 27.9% Adjusted diluted earnings per share Approximately $2.20 to $2.35 $2.13 Capital expenditures Approximately $650 million $470 million Net store closures 2 About flat 32 1 There were no adjusted metrics during fiscal 2025; therefore, reported amounts for operating expense as a percentage of net sales, operating margin, and diluted earnings per share are included for comparative purposes. 2 Refers to company-operated stores. First Quarter Fiscal 2026   First Quarter Fiscal 2026 Outlook First Quarter Fiscal 2025 Results 1 Net sales Up 1% to 2% year-over-year $3.5 billion Gross margin Down approximately 150bps to 200bps including an estimated 200 bps of net tariff impact 41.8% Adjusted operating expense (% of net sales) About 35% 34.3% Webcast and Conference Call Information Whitney Notaro, Head of Investor Relations at Gap Inc., will host a conference call to review the company's f