Gap Inc. has reported net sales of $3.9bn for Q3 ending 1 November 2025, which was a 3% increase compared to last year. Its store sales also increased 3% compared to last year and its online sales increased 2% compared to last year and represented 40% of total net sales.
Gap Inc.'s president and CEO Richard Dickson said: “We are proud to report that Gap Inc.’s third quarter results exceeded our net sales and margin expectations and delivered the seventh consecutive quarter of positive comparable sales.
"Our strategy is working and our brands are gaining momentum with our three largest brands - Old Navy, Gap, and Banana Republic - each posting strong comparable sales."
Gap Inc.'s key Q3 results
Gap Inc.'s sales overall were up 3% compared to the same period last year, while its comparable sales were up 5% year-over-year.
Its operating income was $334m with an operating margin of 8.5% and its net income was $236m with diluted earnings per share of $0.62.
Gap Inc.'s Q3 results by brand
Old Navy's Q3 net sales of $2.3bn were up 5% compared last year with comparable sales up 6%.
Gap's Q3 net sales of $951m were up 6% compared to last year. Its comparable sales were up 7% and this marked a positive comparable sales result for the eighth consecutive quarter.
Banana Republic's Q3 net sales of $464m were down 1% compared to last year, while its comparable sales were up 4%.
Athleta's Q3 net sales were also down 11% compared to last year and sat at $257m. Its comparable sales were also down 11%.
Gap Inc.'s fiscal 2025 outlook
Dickson added: "The strength of our third quarter and quarter-to-date performance positions us well for the holiday selling season and gives us the confidence to increase our full year net sales outlook to the high end of our prior guidance range and raise our full year operating margin outlook. We are focused on executing with excellence and finishing the year strong.”
Gap Inc.'s net sales outlook now sits at 1.7% to 2% growth compared to its prior outlook of 1% to 2% growth.
Its operating margin is expected to be approximately 7.2% including an estimated 100-110bps of net tariff impact. This is compared to a previous outlook of 6.7% to 7% including an estimated 100-110bps of net tariff impact.
The retailer's current net interest income outlook sits at approximately £20m, whereas it previously sat at approximately $15m.
The retailer ended Q3 with nearly 3,500 store locations in about 35 countries, of which 2,497 were company operated and both its current and previous outlook suggests there will be approximately 35 net store closures in FY2025.
