Gap Inc. reported second-quarter fiscal 2025 adjusted earnings per share of $0.57, surpassing analyst estimates of $0.55. However, the company's revenue for the quarter came in at $3.73 billion, narrowly missing Wall Street expectations of $3.75 billion.
Despite the slight revenue miss, CEO Richard Dickson stated that the company 'overdelivered' for the second quarter, indicating positive comparable sales. This performance reflects ongoing efforts in brand reinvigoration and operational execution.
The company also provided an updated warning regarding tariffs, now expecting to absorb a $150 million to $175 million impact from tariffs this fiscal year. This increased estimate for tariff-related costs presents a stronger headwind for the company's profitability, primarily affecting future margins.
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