Monitor Athleta's turnaround progress and assess whether the $1B buyback can offset concerns about declining sales in the brand that was previously a key growth driver, while watching for margin pressure from ongoing tariff impacts.
Price Chart
Executive Summary
Gap Inc. reported flat 2% year-over-year revenue growth for Q4 and full-year fiscal 2025, with mixed brand performance as Old Navy and Gap grew while Athleta declined significantly. The company maintained operating margin at 7.3% and generated $1.3B in operating cash flow, while announcing a new $1B share repurchase program and a 6% dividend increase.
Key Financial Metrics
Key Facts
- Full-year 2025 revenue of $15.4B, up 2% YoY
- Athleta full-year sales down 10% to $1.2B
- Operating margin held at 7.3% despite tariff pressures
- Generated $1.3B operating cash flow, $823M free cash flow
- Announced $1B share repurchase authorization and 6% dividend increase
- Inventory up 7% to $2.2B primarily due to tariff-related cost increases
Financial Impact
$1B share repurchase, $1.3B operating cash flow, 6% dividend increase
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Old Navy | $8.7B | +3.0% |
| Gap | $3.5B | +5.0% |
| Banana Republic | $1.9B | -1.0% |
| Athleta | $1.2B | -10.0% |
Risk Factors
- Athleta segment continues to weaken with 10% annual sales decline
- Tariff impacts reducing merchandise margins by ~120-200 bps
- Inventory up 7% raising potential clearance risk
- First quarter 2026 gross margin expected to decline 150-200 bps
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-015208 |
| Document: gps-20260305.htm | 0001628280-26-015208 |
| Document: 0001628280-26-015208-index-headers.html | 0001628280-26-015208 |
| Document: 0001628280-26-015208-index.html | 0001628280-26-015208 |
| Document: 0001628280-26-015208.txt | 0001628280-26-015208 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 17d ago | SC 13D/A | $23.23 | awaiting T+60 | — | $22.41 (−3.55%) |
Oct 8, 2026 18d ago | SC 13G | $23.36 | awaiting T+60 | — | $22.41 (−4.09%) |
Oct 6, 2026 19d ago | 144 | $23.61 | awaiting T+60 | — | $22.41 (+5.10%) |
Sep 15, 2026 5w ago | 8-K | $20.17 | awaiting T+60 | — | $22.41 (+11.08%) |
Aug 12, 2026 10w ago | Press Release | $20.39 | awaiting T+60 | — | $22.41 (−9.88%) |
Aug 4, 2026 11w ago | Press Release | $20.57 | awaiting T+60 | — | $22.41 (+8.92%) |
May 28, 2026 21w ago | 8-K | $21.15 $20.36 | ▼ −3.74% | ▼ −4.92% | $22.41 (+5.93%) |
Apr 10, 2026 28w ago | Insider Cluster | $25.28 $18.85 | ▲ +25.44% | ▲ +35.00% | $22.41 (+11.37%) |
Apr 6, 2026 29w ago | Insider Cluster | $25.17 $18.82 | ▲ +25.23% | ▲ +38.70% | $22.41 (+10.99%) |
Mar 27, 2026 30w ago | DEFA14A | $23.66 $20.22 | ▼ −14.54% | ▼ −31.04% | $22.41 (−5.31%) |
US Market Status
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