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Here's What Key Metrics Tell Us About Gap (GAP) Q2 Earnings

Gap (GAP) reported $3.65 billion in revenue for the quarter ended July 2026, representing a year-over-year decline of 2%. EPS of $0.52 for the same period compares to $0.57 a year ago.

The reported revenue represents a surprise of -1.86% over the Zacks Consensus Estimate of $3.72 billion. With the consensus EPS estimate being $0.50, the EPS surprise was +4%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Gap performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable Sales - Old Navy - YoY change: -4% versus the four-analyst average estimate of -2%.
Number of Store Locations - Gap - Total: 588 versus 589 estimated by four analysts on average.
Number of Store Locations - Banana Republic - Total: 391 versus the four-analyst average estimate of 396.
Number of Store Locations - Old Navy North America: 1,241 compared to the 1,241 average estimate based on four analysts.
Comparable Sales - YoY change: -1% versus 0.4% estimated by four analysts on average.
Comparable Sales - Banana Republic - YoY change: 3% compared to the 1.6% average estimate based on four analysts.
Comparable Sales - Gap - YoY change: 10% versus 8.3% estimated by four analysts on average.
Number of Store Locations - Company-operated stores: 2,471 versus the four-analyst average estimate of 2,477.
Square Footage - Banana Republic North America: 2.80 Msq ft versus 2.86 Msq ft estimated by three analysts on average.
Net Sales- Gap Global- Total: $844 million versus $843.1 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.
Net Sales- Banana Republic Global- Total: $478 million versus $475.09 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.6% change.
Net Sales- Old Navy Global- Total: $2.06 billion compared to the $2.11 billion average estimate based on four analysts. The reported number represents a change of -4.1% year over year.

View all Key Company Metrics for Gap here>>>

Shares of Gap have returned +4.2% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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The Gap, Inc. (GAP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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