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 m