The Gap, Inc.: 1Q26 Review: Old Navy Disappoints; Gap Delights

Research evidence excerpt

The Gap, Inc.: 1Q26 Review: Old Navy Disappoints; Gap Delights

Equity Research

U.S. Specialty Retail, Apparel & Footwear

28 May 2026

The Gap, Inc.

1Q26 Review: Old Navy

Disappoints; Gap Delights

1Q26 adj. EPS matched cons., while sales and OM missed, GAP OVERWEIGHT

offset by lower tax expense. Comp sales of +2.0% missed Unchanged

U.S. Specialty Retail,

cons. of +2.9%, driven by a slowdown at Old Navy. While FY26 Apparel & Footwear POSITIVE

Unchanged

EPS guidance was raised due to interest income and a lower Price Target USD 26.00

lowered -21% from USD 33.00share count, sales guidance was lowered due to Old Navy

moderation. Price (28-May-26) USD 25.00

Potential Upside/Downside +4.0%

Source: Bloomberg, Barclays Research

Market Cap (USD mn) 9133

Shares Outstanding (mn) 365.34

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Free Float (%) 66.45

Support our industry-leading analysts with 5-Star 52DividendWk AvgYieldDaily(%)Volume (mn) 2.808.9

Return on Equity TTM (%) 23.10 votes in this year’s Extel All-America Research

Current BVPS (USD) 10.22

Source: Bloomberg Survey

Price Performance Exchange-NYSE

Vote Now View Analysts 52 Week range USD 29.36-18.68

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Source: IDC

Old Navy disappoints even as Gap surprises to the upside. GAP reported mixed 1Q26 results Link to Barclays Live for interactive charting

with net sales +1% and comps +2%, driven by continued strength at the Gap brand, which offset

disappointing execution at Old Navy. Gap brand was the clear standout, delivering +10% comps U.S.