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Gap Faces Tariff Woes, Leadership Shake-Up Amid Declining Sales

8/29/2025

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Story summary
  • Gap's stock declined due to increased tariff costs, estimated at $150 million to $175 million, affecting profit margins.
  • The company reported mixed fiscal Q2 results: earnings per share were 57 cents, with revenue at $3.73 billion, slightly below expectations.
  • Athleta's sales fell 11%, leading to a leadership change.
  • Gap targets 1% to 2% net sales growth in fiscal 2025 while addressing tariff impacts.