Gap Inc. posts 1% sales growth, raises full-year earnings outlook, returns $464M to shareholders

Gap Inc. reported a 1% increase in net sales for Q1 2026, with a 2% rise in comparable sales marking the ninth consecutive quarter of growth. The company achieved a gross margin of 40.5%, exceeding expectations, and returned $464 million to shareholders through share repurchases and dividends. Gap brand showed strong performance with 10% sales growth, while Athleta faced declines. The company raised its full-year earnings per share outlook, signaling confidence in its long-term prospects amid ongoing brand transformations and strategic initiatives.