GAP INC

Gap Inc. Reports Second Quarter Fiscal 2026 Results

Net sales down 2% compared to last year; comparable sales down 1%

Exceeded reported and adjusted operating margin expectations

Returned $726 million to shareholders through share repurchases and dividends year-to-date

Provides updated outlook for full year while raising earnings per share outlook

Company separately announces Michael Francis as Old Navy's next President and CEO, succeeding Haio Barbeito

SAN FRANCISCO –August 27, 2026 – Gap Inc. (NYSE: GAP), the largest specialty apparel company in the U.S. with a purpose-driven house of iconic brands including Old Navy, Gap, Banana Republic, and Athleta, today reported financial results for its second quarter ended August 1, 2026.

“While top-line results in the second quarter were modestly below expectations, continued operational and financial rigor contributed to gross margin strength resulting in the Company exceeding profit expectations,” said President and Chief Executive Officer, Richard Dickson.

“We are particularly proud of the momentum at the Gap brand, which posted another quarter of double-digit comparable sales. We have work to do at Old Navy, but we have a clear understanding of the factors that impacted performance and are taking targeted actions that are already driving improved results. We remain focused on disciplined execution and performing while we transform in order to win in the second half,” Dickson continued.