HighGravityDataGap — May 28, 2026 release
Fiscal 2027 first-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001628280-26-038825
Showing in the filing
Net sales
“Flat to down 1% year-over-year”
Period
Q2 FY2026
Measure
GAAP-tied
Source
Guidance table
All guidance in this release · 19
Dividend per share for Q2 FY2026
“$0.175 per share”
Fiscal 2026 dividend for Q2 FY2026
“$0.175 per share”
Net tariff relief to gross profit and operat… for FY2026
“approximately $80 million”
Benefit to gross margin and operating margin… for FY2026
“approximately 50 basis points”
Diluted earnings per share (reported basis) for FY2026
“approximately $2.83 to $2.93”
Operating expense (reported basis) for FY2026
“leverage”
Net sales for FY2026
“Up 1% to 2% year-over-year”
Gross margin for FY2026
“Flat to up slightly year-over-year”
Adjusted operating expense (% of net sales) for FY2026
“About flat year-over-year”
Adjusted operating margin for FY2026
“About 7.3% to 7.5%”
Net interest income for FY2026
“Approximately $25 million”
Effective tax rate for FY2026
“Approximately 25%”
Diluted weighted average share count for FY2026
“Approximately 375 million”
Adjusted diluted earnings per share for FY2026
“Approximately $2.30 to $2.40”
Capital expenditures for FY2026
“Approximately $650 million”
Net store closures for FY2026
“About flat”
Net sales for Q2 FY2026
“Flat to down 1% year-over-year”
Gross margin for Q2 FY2026
“Flat to down 50 basis points”
Operating expense (% of net sales) for Q2 FY2026
“Deleverage approximately 110 basis points to 120 basis points”
Exhibit 99.1 · the passage around this item
… earlier in the release
Full Year Fiscal 2026 Current FY 2026 Outlook Prior FY 2026 Outlook FY 2025 Results 1 Net sales Up 1% to 2% year-over-year Up 2% to 3% year-over-year $15.4 billion Gross margin Flat to up slightly year-over-year Flat to up slightly year-over-year 40.8% Adjusted operating expense (% of net sales) About flat year-over-year About flat year-over-year 33.5% Adjusted operating margin About 7.3% to 7.5% About 7.3% to 7.5% 7.3% Net interest income Approximately $25 million Approximately $10 million to $15 million $17 million Effective tax rate Approximately 25% Approximately 27% 27.9% Diluted weighted average share count Approximately 375 million N/A 384 million Adjusted diluted earnings per share Approximately $2.30 to $2.40 Approximately $2.20 to $2.35 $2.13 Capital expenditures Approximately $650 million Approximately $650 million $470 million Net store closures 2 About flat About flat 32 Second Quarter Fiscal 2026 Second Quarter Fiscal 2026 Outlook Q2 2025 Results Net sales Flat to down 1% year-over-year $3.7 billion Gross margin Flat to down 50 basis points 41.2% Operating expense (% of net sales) Deleverage approximately 110 basis points to 120 basis points 33.4% Webcast and Conference Call Information Shirley Martin, Senior Director of Investor Relations at Gap Inc., will host a conference call to review the Company’s first quarter fiscal 2026 results beginning at approximately 2:00 p.m. Pacific Time today. Ms. Martin 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. Market Share Information References to market share in this press release and related conference call and accompanying materials are for the US market, according to Circana data for the 12 month period ending April 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. 2
later in the release …
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.