Clothing retailer the Gap (GAP) is blaming powerful winter storms in the U.S. for its mixed financial results.
The San Francisco-based company reported earnings per share (EPS) of $0.45 U.S. for the fourth quarter of 2025, missing Wall Street estimates that called for $0.46 U.S.
Revenue during the year-end holiday period totaled $4.24 billion U.S., which matched the consensus forecast on Wall Street. Sales were up 2% from a year earlier.
Management blamed cold weather, snow and ice throughout much of the U.S. for the poor performance, saying it led to 800 temporary store closures.
The Gap reported mixed results across all of its retail brands, which also include Old Navy, Banana Republic and Athleta.
Gap executives said that the company’s gross margin was hurt by tariffs and fell to 38.1% during the latest quarter, slightly worse than analysts had anticipated.
Looking ahead, the Gap said that it expects revenue to rise between 1% and 2% in the current quarter. That compares to Wall Street expectations for 2% growth.
For all of 2026, the Gap forecasts sales growth of 2% to 3%, in line with analysts’ expectations of 2.5% growth.
The Gap did not factor recent changes to U.S. tariffs into its outlook because the company believes that it’s “premature to plan for a change” as the situation is evolving.
GAP stock is down 8% immediately after the company’s latest print. Over the past 12 months, the shares have risen 40% to trade at $27.20 U.S.
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