The American clothing group GAP Inc., parent company of Old Navy, Gap, Banana Republic and Athleta, achieved strong results in the first quarter of the current financial year. For the quarter concluded on May 3, 2025, the company reported a net turnover of $ 3.5 billion (3.23 billion euros), which corresponds to an increase of two percent compared to the previous year. The comparable sales also increased by two percent.
E-commerce turnover rose by six percent and made 39 percent of the total net turnover. The stationary sales outlets, on the other hand, did not change any change compared to the previous year.
GAP Inc. was also able to grow with profitability. The gross margin improved by 60 basis points to 41.8 percent. The operational result was $ 260 million (240 million euros), which corresponds to an operational margin of 7.5 percent. The net profit was $ 193 million (178 million euros), according to a diluted profit per share of 51 cents.
“Gap Inc. achieved strong results in the first quarter and exceeded the financial expectations. We won market shares in the ninth quarter in a row,” said Chief Executive Officer (CEO) Richard Dickson. “We are optimistic in this highly dynamic environment, but also realistic. We continue to concentrate on the factors that we can control. At the same time, we are building our company for long -term growth.”
GAP achieves strong growth in the first quarter
Old Navy continued his positive development: the brand’s net turnover was two billion US dollars (1.84 billion euros), an increase of three percent. The comparable sales also increased by three percent – the ninth quarter in a row with market share gains.
The GAP brand also showed a gratifying development. Net sales rose by five percent to $ 724 million (667 million euros), as well as the comparable sales. GAP thus recorded the sixth quarter in a row with a positive area -adjusted turnover and the eighth quarter in a row with market share gains – a clear sign of the ongoing customer response.
Banana Republic achieved a net turnover of $ 428 million (394 million euros), a decrease of three percent. The comparable sales remained stable, while the brand continued to reorganize strategically. Athleta, on the other hand, faces challenges: sales fell by six percent to $ 308 million (284 million euros), the comparable sales decreased by eight percent. The brand is currently working on a realignment of product and marketing.
At the end of the quarter, GAP Inc. operates around 3,500 branches worldwide in over 35 countries, including 2,496 on their own.
Gap continues to look positively into the future
With a view to the 2025 financial year, GAP Inc. forecasts net sales growth from one to two percent and growth of the operating result of eight to ten percent compared to the 2024 financial year. The outlook calculates with investment expenditure of around $ 600 million (552 million euros) and around 35 net shop closures. However, this outlook does not fully take into account the potential effects of tariffs for the year as a whole.
For the second quarter of the 2025 financial year, the company expects net turnover that will be roughly at the level of the previous year. The gross margin is expected to be similar to the first quarter.
This article was used with digital tools translated.
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