The Gap, Inc. Q4 FY2025 earnings call

Richard Dixon mentioned that Gap, Inc. had successful fourth quarter with comparable sales growth. Old Navy had 3% comp sales growth for fifth consecutive quarter. Gap Brand had 7% comp sales growth for ninth consecutive quarter. Banana Republic had 4% comp sales growth with sharper merchandising. Athleta underwent reorganization. In 2026, plans to expand into beauty, accessories, and advance fashion-tainment platform with appointment of Chief Entertainment Officer.

Old Navy had 3% comparable sales growth, net sales of $2.3 billion, accounting for ~54.76% of total net sales. Gap Brand had 7% comparable sales growth, net sales of $1.1 billion, accounting for ~26.19%. Banana Republic had 4% comparable sales growth, net sales of $549 million, accounting for ~13.07%. Athleta had 11% decrease in net sales, net sales of $354 million, accounting for ~8.43%.

Management expects net sales growth of approximately 2% to 3% in 2026. Gross margins are expected to be flat to up slightly. Adjusted operating margin is expected to be about 7.3% to 7.5%. Reported EPS is expected to be $2.71 to $2.86.

Significant impact of global tariff rate changes in 2025 on profits, affecting gross and operating margins. Uncertainty related to Supreme Court ruling and subsequent Section 122 announcement.

Q: Richard, you outlined several growth accelerators with beauty, accessories, fashion attainment, technology. Can you talk about how you're balancing investments to maintain momentum in the core while also seeding growth in these new areas?

A: Thanks for the question, Mark...

Q: Afternoon. Richard, any color you can share on store sales by brand, how you're thinking about that going forward?

A: Simeon, thanks for the question...