Gap Q4 2025 slides: tariff pressures weigh on margins despite sales momentum

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil extends weekly gains as Iran conflict rages on, with crude surging around 18% Trump replaces Homeland Security chief Kristi Noem Wall Street ends lower on escalating Iran conflict, report of AI export curbs Trump says he must be involved in selecting Iran’s next leader (South Africa Philippines Nigeria) Gap Q4 2025 slides: tariff pressures weigh on margins despite sales momentum By Company News Published 03/05/2026, 06:36 PM Gap Q4 2025 slides: tariff pressures weigh on margins despite sales momentum 0 GAP -1.93% Introduction & Market Context Gap Inc. (NYSE:GPS) presented its fourth quarter fiscal 2025 results on March 5, 2026, delivering financial performance that met analyst expectations while navigating significant tariff-related headwinds. The apparel retailer reported net sales of $4.2 billion, up 2% year-over-year, with comparable sales rising 3% to mark the company’s eighth consecutive quarter of positive comparable sales growth. Despite meeting forecasts, the company’s stock declined 1.93% in after-hours trading to $27.60, reflecting investor concerns about margin pressures. The presentation revealed that tariffs impacted Q4 gross margins by approximately 200 basis points, though underlying business fundamentals remained solid across most of the company’s brand portfolio. Quarterly Performance Highlights As shown in the following snapshot of fourth quarter results, Gap Inc. achieved key financial metrics while absorbing substantial tariff costs: The company’s Q4 gross margin of 38.1% declined 80 basis points year-over-year, but management emphasized this figure included roughly 200 basis points of net tariff impact, implying approximately 120 basis points of underlying margin expansion. Operating margin came in at 5.4%, down 80 basis points, while earnings per share of $0.45 compared to $0.54 in the prior year period. The following overview of Q4 achievements highlights the company’s operational p...