Gap — Aug 27, 2026 release

Full Year Fiscal 2026 Current FY 2026 Outlook Prior FY 2026 Outlook FY 2025 Results 1 Net sales Up 1% to 1.5% year-over-year Up 1% to 2% year-over-year $15.4 billion Adjusted gross margin 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 7.4% to 7.6% About 7.3% to 7.5% 7.3% Adjusted interest, net Approximately $20 million Approximately $25 million $17 million Adjusted effective tax rate Approximately 25% to 26% Approximately 25% 27.9% Diluted weighted average share count Approximately 367 million Approximately 375 million 384 million Adjusted diluted earnings per share Approximately $2.35 to $2.45 Approximately $2.30 to $2.40 $2.13 Capital expenditures Approximately $650 million Approximately $650 million $470 million Net store closures 2 About flat About flat 32 Third Quarter Fiscal 2026 Third Quarter Fiscal 2026 Outlook Q3 2025 Results Net sales Up 1.5% to 2.5% year-over-year $3.9 billion Gross margin Up about 25 to 75 basis points 42.4% Operating expense (% of net sales) Slight leverage 33.9% 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 second 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. 1 There were no adjusted metrics during fiscal 2025; therefore, reported amounts for gross margin, operating expense as a percentage of net sales, operating margin, interest, net, effective tax rate, and diluted earnings per share are included for comparative purposes. 2 Refers to Company-operated stores. 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 J