Gap Inc (NYSE:GAP) reported financial results for the fourth quarter Thursday after the bell. Here’s a look at the key highlights from the apparel retailer’s report.

Gap Misses Estimates On Top And Bottom Lines

  • Q4 Revenue: $4.236 billion, versus estimates of $4.244 billion
  • Q4 EPS: 45 cents, versus estimates of 46 cents

Net sales increased 2% on a year-over-year basis as comparable sales climbed 3%. Store sales were flat, while online sales increased 5% compared to the prior year’s quarter and represented 42% of total net sales.

Here’s a breakdown of comparable sales by brand.

  • Old Navy: up 3%
  • Gap: up 3%
  • Banana Republic: up 4%
  • Athleta: down 10%

“The execution of our playbook is driving consistent results, as we achieved our second consecutive year of topline growth and eighth consecutive quarter of positive comparable sales,” said Richard Dickson, president and CEO of Gap.

Gap ended the period with $2.2 billion in total inventory and approximately $3 billion in cash, cash equivalents and short-term investments.

Outlook

Gap sees first quarter sales of $3.535 billion-$3.570 billion vs $3.531 billion analyst estimate.

What’s Next For Gap?

Gap’s board authorized a new $1 billion share repurchase program, superseding the existing buyback authorization. The company noted that it repurchased seven million shares for $155 million during 2025.

Gap expects first-quarter revenue of $3.53 billion to $3.57 billion versus estimates of $3.53 billion. The company anticipates full-year revenue of $15.71 billion to $15.86 billion versus estimates of $15.75 billion.

Gap also guided for full-year adjusted earnings of $2.20 to $2.35 per share versus estimates of $2.32 per share.

“As we move into the next phase of our transformation, we remain focused on growing our core apparel business through continuous improvement while thoughtfully seeding growth accelerators that will scale over time,” Dickson added.

Gap leadership is currently discussing the quarter on an earnings call that started at 5 p.m. ET.

GAP Shares Slide After Earnings

GAP Price Action: Gap shares were down 7.06% at $25.28 during premarket trading on Friday, according to Benzinga Pro data.

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