Gap — May 28, 2026 release

All fiscal 2026 outlook measures provided below exclude the net impact of non-recurring items. 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. P