Gap Inc. Q1 revenue misses estimates, shares drop over 15% amid weak Old Navy sales

Gap Inc. reported a 1% increase in Q1 revenue to $3.5 billion, falling short of analyst expectations, with Old Navy's comparable sales growing only 1% versus the expected 3%. The disappointing results led to a more than 15% drop in shares and a cut in the full-year sales guidance. Management cited slower-than-expected starts and inventory issues, particularly at Athleta. JPMorgan downgraded the stock and lowered its price target, intensifying the sell-off. Investors who suffered losses are being encouraged to consider legal options.