Slides
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Q2 Fiscal 2026 SECOND QUARTER RESULTS August 27, 2026
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Forward Looking Statements / Non-GAAP Financial Measures These materials and related earnings press release and conference call contain forward -looking statements within the “safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward -looking statements. Forward-looking statements include statements identified as such in our August 27, 2026 earnings press release. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actua l results to differ materially from those in the forward-looking statements. Information regarding factors that could cause results to differ can be found in our August 27, 2026 earnings press release, our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and our other filings with the Securities and Exchange Commission. These forward-looking statements are based on information as of August 27, 2026. We assume no obligation to publicly update or revise our forward -looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will no t be realized. SEC REGULATION G These materials and related earnings press release and conference call include the non-GAAP measures free cash flow and certain statement of operations metrics, including: (i) adjusted cost of goods sold and occupancy expenses; (ii) adjusted gross profit; (iii) adjusted gross margin; (iv) adjusted ope rating expense; (v) adjusted operating income; (vi) adjusted operating margin; (vii) adjusted interest, net; (viii) adjusted income tax expense; (ix) adjuste d net income; (x) adjusted earnings per share; and (xi) adjusted diluted earnings per share. Reconciliations of free cash flow and these statement of operations metrics from the most directly comparable GAAP measures are included in these materials and in our August 27, 2026 earnings press release. MARKET SHARE INFORMATION References to market share in these materials and related earnings press release and conference call are for the US market, a ccording to Circana data for the 12 month period ending July 2026, unless stated otherwise. Market share data is subject to limitations on the availability of up -to-date information. In particular, market share data may not be available for all retail channels in a category. The company believes that the Circana data is reliable, but it has not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information reported by the compan y may be different from market share information reported by other companies due to differences in category definitions, the use of data from different vendors, i nternal estimates and other factors. FORWARD -LOOKING STATEMENTS
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Phases of Transformation Fix the Fundamentals PHASE 1: Build Momentum PHASE 2: Accelerate Growth PHASE 3:
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Strategic Priorities Deliver Financial & Operational Rigor Build Our Brands Optimize Our Platform Strengthen Our Culture To deliver consistent financial performance by driving profitable growth, optimizing our cost structure, and executing with discipline. To increase brand relevance, elevate our product and customer experience, and drive sustainable revenue growth. To advance platform capabilities that amplify and enable our brands to drive scale and measurable financial impact. To develop future-ready talent and foster a high performing culture rooted in purpose to bridge gaps for a better world.
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FY26 Areas of Focus Growing Core Apparel Business Seeding Growth Accelerators and New Capabilities • Customer-centric assortments • Culturally relevant storytelling • Elevated customer experience • Beauty • Accessories • Fashiontainment • Technology
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2026 Second Quarter Highlights • Net sales of $3.7 billion, down 2% year-over-year; comparable sales down 1% • Exceeded profit expectations in the quarter • Adjusted gross margin of 41.4%(1), exceeding outlook • Adjusted operating margin of 7.1%(1), while investing strategically in future growth accelerators and capabilities • Opportunistically repurchased $200 million shares in the second quarter • Year-to-date, returned $726 million to shareholders through dividends and share repurchases • Ended the quarter with a strong cash position of $2.5 billion 1. Excludes net benefit related to International Emergency Economic Powers Act (“IEEPA”) tariff refund recognized during the second quarter of fiscal 2026. The description and reconciliation of these measures from their most directly comparable GAAP measures is included in our August 27, 2026 earnings press release, which is available on investors.gapinc.com.
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+1,070 BPS VS LY 18.5% +1,160 BPS VS LY 52.8% Q2 2026 Snapshot Of Key Financial Metrics $3.7B -2% VS LY NET SALES GROSS MARGIN(1) (1)% VS +1% LY COMPS 34.3% OPEX% +90 BPS VS LY OP MARGIN(2) $1.38 VS $0.57 LY EPS(3) 1. Includes $417 million or 1,140 basis points of net benefit related to IEEPA tariff refund recognized during the second quarter of fiscal 2026. 2. Includes $422 million or 1,150 basis points of net benefit related to the IEEPA tariff refund, including $5 million of interest income received during the second quarter of fiscal 2026. 3. Includes $0.86 of earnings per share benefit related to IEEPA tariff refunds.
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-70 BPS VS LY 7.1% +20 BPS VS LY 41.4% Q2 2026 Snapshot Of Key Financial Metrics - Adjusted $3.7B -2% VS LY NET SALES ADJUSTED GROSS MARGIN(1) (1)% VS +1% LY COMPS 34.3% +90 BPS VS LY ADJUSTED OP MARGIN(1) $0.52 VS $0.57 LY ADJUSTED EPS(1) 1. Excludes net benefit related to IEEPA tariff refund recognized during the second quarter of fiscal 2026. The description and reconciliation of these measures from their most directly comparable GAAP measures is included in our August 27, 2026 earnings press release, which is available on investors.gapinc.com. OPEX%
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#1 SPECIALTY APPAREL RETAILER IN THE U.S.(2) (2)% NET SALES GROWTH (1) (1)% COMPARABLE SALES 1. Represents second quarter fiscal 2026 year-over-year net sales growth. 2. Source: Circana, U.S. Apparel Market, R12M ending July 2026.
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#1 SPECIALTY APPAREL BRAND AND RETAILER IN THE U.S. (2) NET SALES GROWTH (1) COMPARABLE SALES (4)% (4)% 1. Represents second quarter fiscal 2026 year-over-year net sales growth. 2. Source: Circana, U.S. Apparel Market, R12M ending July 2026.
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11 CONSECUTIVE QUARTERS OF POSITIVE COMPARABLE SALES NET SALES GROWTH (1) COMPARABLE SALES +9% +10% 1. Represents second quarter fiscal 2026 year-over-year net sales growth.
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CONSECUTIVE QUARTERS OF POSITIVE COMPARABLE SALES 5 NET SALES GROWTH (1) COMPARABLE SALES +1% +3% 1. Represents second quarter fiscal 2026 year-over-year net sales growth.
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(12%) COMPARABLE SALES We remain focused on disciplined execution as we rebuild the brand profitably (12%) NET SALES GROWTH (1) 1. Represents second quarter fiscal 2026 year-over-year net sales growth.
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Q2 2026 Financial Position CASH, CASH EQUIVALENTS, & SHORT -TERM INVESTMENTS: • $2.5 billion, up 2% versus last year ENDING INVENTORY: • Inventory flat versus last year YEAR-TO-DATE CASH FLOW (1): • $550 million net cash from operating activities • $261 million free cash flow CAPITAL STRUCTURE: • $750M of 3.625% Senior Notes due 2029 • $750M of 3.875% Senior Notes due 2031 1. Includes $100 million partial IEEPA tariff refund and related interest income received during the second quarter of fiscal 2026 and the net impact of a $313 million legal settlement and concurrent $50 million charitable donation that occurred during the first quarter of fiscal 2026. All-Brand Flatlay Option 3
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Capital Allocation 1) INVEST IN BUSINESS • Targeting FY 2026 CapEx of ~$650 million • Investments in technology, stores and supply chain 2) ATTRACTIVE DIVIDEND • Paid $62 million to shareholders in dividends Q2 2026 • Board of Directors approved Q3 2026 dividend of $0.175 per share 3) SHARE REPURCHASES • Completed previously announced $200 million accelerated share repurchase program • Additionally, repurchased $200 million worth of shares on the open market in Q2 2026 • Achieved 5% accretion, exceeding our stated goal for the year of slight accretion • ~$400 million remaining under prior authorization Year -to-date , returned a total of $726 MILLION TO SHAREHOLDERS in the form of dividends and share repurchases
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1. Strategic factories are Tier 1 facilities representing 80% of our total business spend in fiscal 2021 as a baseline for our 2025 goals (defined as: purchase order first cost). 2. Defined as: Better Cotton (formerly BCI), verified U.S.-grown cotton (USCTP), organic, in conversion (to verified organic), recycled, or regenerative. 3. As of the end of fiscal 2025. Commitment to Sustainability Performance 100% BRIDGING THE EQUITY GAP of strategic factories participated in RISE, reaching over 113,000 workers in 2025 alone. (1) Pay Equity Gap Inc. conducts annual internal pay equity reviews to ensure our pay practices are fair and competitive. BRIDGING THE CLIMATE GAP Net Zero by 2050 target approved by the Science Based Targets Initiative. 100% of cotton sourced from more sustainable sources. (2) BRIDGING THE OPPORTUNITY GAP 10% of entry-level store employees hired from This Way ONward, exceeding target. 33,000+ youth reached through This Way ONward since 2007. (3)
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METRIC Current FY 2026 OUTLOOK Prior FY 2026 OUTLOOK Net sales Up 1% to 1.5% Up 1% to 2% Adjusted gross margin(1) Up slightly Flat to up slightly Adjusted operating expense %(2) About flat About flat Adjusted operating margin(1)(2) About 7.4% to 7.6% About 7.3% to 7.5% Adjusted net interest income(3) ~$20 million ~$25 million Adjusted effective tax rate ~25% - 26% ~25% Diluted weighted average shares ~367 million ~375 million Adjusted diluted EPS(4) $2.35 to $2.45 $2.30 to $2.40 Capital expenditures About $650 million About $650 million Net store closures(5) About flat About flat 1. Excludes $417 million net benefit related to the International Emergency Economic Powers Act (“IEEPA”) tariff refund recognized during the second quarter of fiscal 2026. 2. Excludes $313 million net gain from a legal settlement and concurrent $50 million charitable donation that occurred in the first quarter of fiscal 2026. 3. Excludes interest income related to the IEEPA tariff refund estimated to be received in fiscal 2026. 4. Excludes the earnings per share impact of the non-recurring items noted above. The description and reconciliation of this measure from the most directly comparable GAAP measure is included in our August 27, 2026 earnings press release, which is available on investors.gapinc.com. 5. Refers to company-operated stores. Fiscal 2026 Outlook METRIC Q3 2026 OUTLOOK Net sales Up 1.5% to 2.5% year-over-year Gross margin Up about 25 to 75 basis points Operating expense % Slight leverage • Narrowing full-year net sales growth outlook to up 1% to 1.5%, reflecting second-quarter performance. • Updating Old Navy comparable sales outlook to approximately flat to down 1% (previously flat to up 1%); expectations for the remaining brands are generally unchanged, except for Gap brand, which is expected to be grow in the high-single to low double-digit range, compared with prior expectations of up high-single digits. • Raising adjusted operating margin outlook reflecting updated full-year net tariff relief assumptions following the Section 301 announcement on July 23, 2026. • Raising reported and adjusted earnings per share outlook reflecting a lower weighted-average share count incorporating share repurchases completed in the second quarter • The Company expects FY 2026 reported EPS to be $3.77 to $3.87.
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Appendix SUPPLEMENTAL MATERIALS
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NOTE: All dollar, share, and square footage amounts are shown in millions, with the exception of per share and store count. I. Statement of Operations Highlights II. Balance Sheet Highlights III. Cash Flow Statement Highlights IV. Other Metrics V. Comparable Sales by Global Brand VI. Net Sales by Brand and Geography
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1. Earnings per share are computed individually for each of the periods presented; therefore, the sum of the earnings per share amounts for the quarters may not equal the total for the years. 2. All fiscal years presented consist of 52 weeks, except the fiscal year ended February 3, 2024 (FY 2023) which consisted of 53 weeks. All quarters presented consist of 13 weeks. I. Statement of Operations Highlights $ millions F Y21 (2) F Y22 (2) F Y23 (2) F Y24 (2) Q1 Q2 Q3 Q4 FY Q1 Q2 Net sales 16,670$ 15,616$ 14,889$ 15,086$ 3,463$ 3,725$ 3,942$ 4,236$ 15,366$ 3,497$ 3,651$ Cost of goods sold and occupancy expenses 10,033 10,257 9,114 8,859 2,015 2,189 2,272 2,622 9,098 2,080 1,722 Gross profit 6,637 5,359 5,775 6,227 1,448 1,536 1,670 1,614 6,268 1,417 1,929 Operating expenses 5,827 5,428 5,215 5,115 1,188 1,244 1,336 1,385 5,153 972 1,253 Operating income (loss) 810 (69) 560 1,112 260 292 334 229 1,115 445 676 Loss on extinguishment of debt 325 - - - - - - - - - - Interest, net 162 70 4 (25) (3) (4) (3) (7) (17) (5) (4) Income (loss) before income taxes 323 (139) 556 1,137 263 296 337 236 1,132 450 680 Income tax expense 67 63 54 293 70 80 101 65 316 111 179 Net Income (loss) 256$ (202)$ 502$ 844$ 193$ 216$ 236$ 171$ 816$ 339$ 501$ Weighted-average number of shares - basic 376 367 370 376 375 373 372 373 373 367 355 Weighted-average number of shares - diluted 383 367 376 384 382 379 380 384 384 378 362 Basic earnings (loss) per share (1) 0.68$ (0.55)$ 1.36$ 2.24$ 0.51$ 0.58$ 0.63$ 0.46$ 2.19$ 0.92$ 1.41$ Diluted earnings (loss) per share (1) 0.67$ (0.55)$ 1.34$ 2.20$ 0.51$ 0.57$ 0.62$ 0.45$ 2.13$ 0.90$ 1.38$ F Y 2026 (2)F Y 2025 (2)
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I. Statement of Operations Highlights (Adjusted) 1. There are no adjusted metrics during these periods. Please refer to the Statement of Operations Highlights for GAAP metrics. 2. FY 2023 amounts primarily related to employee-related costs and consulting costs related to our previously announced actions to further simplify and optimize our operating model and structure. 3. FY 2022 amount represents impairment charges as a result of the decision to discontinue the Yeezy Gap business, primarily related to inventory, as well as inventory impairment charges as a result of delayed seasonal product due to global supply chain disruption and extended size product discontinued at stores. 4. FY 2021 amounts represent the net impacts from changes to our European model. These impacts primarily include employee-related and lease-related costs. 5. FY 2022 amount represents the impact of the loss on divestiture activity related to the transition of the Old Navy Mexico business. FY 2021 amount represents the impact of the loss on divestiture activity for the Janie and Jack and Intermix brands. 6. FY 2026 amount represents the impact of a gain of $313 million related to a credit card interchange fee litigation settlement, net of legal fees. 7. FY 2026 amount represents the impact of a $50 million charitable contribution made concurrently with the net gain from legal settlement. 8. FY 2026 amount represents the impact of IEEPA tariff refunds of approximately $512 million, partially offset by a commitment of appreciation of approximately $95 million for certain vendors. The impact also reflects $5 million of related interest income received. 9. The above metrics were computed individually for each line item and each period; therefore, the change in gross margin and operating expenses may not equal the total change in operating margin. $ millions FY2 1 FY2 2 FY2 3 F Y24 (1) F Y25 (1) Q1 Q2 GAAP gross profit $6,637 $5,359 $5,775 $1,417 $1,929 Restructuring costs (2) - - 4 - - Impairment charges (3) - 111 - - - Strategic actions in Europe (4) (9) - - - - Net tariff refund recovery (8) - - - - (417) Adjusted gross profit $6,628 $5,470 $5,779 $1,417 $1,512 GAAP gross margin (% of sales) 39.8% 34.3% 38.8% 40.5% 52.8% Adjusted gross margin (% of sales) 39.8% 35.0% 38.8% 40.5% 41.4% GAAP operating expense $5,827 $5,428 $5,215 $972 $1,253 Gain on sale of building - 83 47 - - Restructuring costs (2) - - (89) - - Loss on divestiture activity (5) (59) (35) - - - Strategic actions in Europe (4) (50) - - - - Gain from legal settlement (6) - - - 313 - Charitable contribution (7) - - - (50) - Adjusted operating expense $5,718 $5,476 $5,173 $1,235 $1,253 GAAP operating income (loss) $810 ($69) $560 $445 $676 Adjusted operating income (loss) $910 ($6) $606 $182 $259 GAAP operating margin (% of sales) (9) 4.9% (0.4%) 3.8% 12.7% 18.5% Adjusted operating margin (% of sales) (9) 5.5% (0.0%) 4.1% 5.2% 7.1% G AAP interest, net $162 $70 $4 ($5) ($4) Net tariff refund recovery (8) - - - - 5 Adjusted interest, net $162 $70 $4 ($5) $1 GAAP Diluted EPS $0.67 ($0.55) $1.34 $0.90 $1.38 Adjusted Diluted EPS $1.44 ($0.40) $1.43 $0.38 $0.52 F Y 2026
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II. Balance Sheet Highlights $ millions FY2 1 FY2 2 FY2 3 FY2 4 Q1 Q2 Q3 Q4 Q1 Q2 A ssets Cash and cash equivalents 877$ 1,215$ 1,873$ 2,335$ 1,976$ 2,194$ 2,262$ 2,616$ 2,162$ 2,103$ Short-term investments - - - 253 244 238 255 386 399 382 Merchandise inventory 3,018 2,389 1,995 2,067 2,097 2,294 2,459 2,207 2,095 2,297 Other current assets 1,270 1,013 527 548 567 651 664 568 583 1,088 Total current assets 5,165 4,617 4,395 5,203 4,884 5,377 5,640 5,777 5,239 5,870 Property and equipment, net of accumulated depreciation 3,037 2,688 2,566 2,496 2,470 2,478 2,517 2,507 2,535 2,555 Operating lease assets 3,675 3,173 3,115 3,240 3,267 3,397 3,337 3,443 3,480 3,557 Other long-term assets 884 908 968 946 944 894 876 905 883 874 Total assets 12,761$ 11,386$ 11,044$ 11,885$ 11,565$ 12,146$ 12,370$ 12,632$ 12,137$ 12,856$ Liabilities and stockholders' equity Accounts payable 1,951$ 1,320$ 1,349$ 1,488$ 1,292$ 1,656$ 1,545$ 1,567$ 1,298$ 1,696$ Accrued expenses and other current liabilities 1,367 1,219 1,108 1,083 841 881 1,067 1,044 883 869 Current portion of operating lease liabilities 734 667 600 632 633 631 629 634 631 618 Income taxes payable 25 50 39 53 88 29 38 55 89 38 Total current liabilities 4,077 3,256 3,096 3,256 2,854 3,197 3,279 3,300 2,901 3,221 Revolving credit facility - 350 - - - - - - - - Long-term debt 1,484 1,486 1,488 1,490 1,490 1,491 1,491 1,492 1,492 1,493 Long-term operating lease liabilities 4,033 3,517 3,353 3,353 3,363 3,470 3,396 3,485 3,519 3,609 Other long-term liabilities 445 544 512 522 537 555 557 554 570 582 Total long-term liabilities 5,962 5,897 5,353 5,365 5,390 5,516 5,444 5,531 5,581 5,684 Total stockholders' equity 2,722 2,233 2,595 3,264 3,321 3,433 3,647 3,801 3,655 3,951 Total liabilities and stockholders' equity 12,761$ 11,386$ 11,044$ 11,885$ 11,565$ 12,146$ 12,370$ 12,632$ 12,137$ 12,856$ F Y 2025 F Y 2026
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III. Cash Flow Statement Highlights 1. Please refer to each respective period’s earnings press release for further information on the total cash, cash equivalents, and restricted cash. $ millions FY2 1 FY2 2 FY2 3 FY2 4 Q1 Q2 Q3 Q4 FY Q1 Q2 Cash flows from operating activities: Net income (loss) 256$ (202)$ 502$ 844$ 193$ 216$ 236$ 171$ 816$ 339$ 501$ Depreciation and amortization 504 540 522 500 121 122 125 128 496 128 131 Gain on sale of buildings - (83) (47) - - - - - - - - Other, net 49 352 555 142 (454) 110 (62) 387 (19) (254) (295) Net cash provided by (used for) operating activities 809 607 1,532 1,486 (140) 448 299 686 1,293 213 337 Net cash provided by (used for) investing activities (446) (227) (334) (692) (73) (91) (163) (273) (600) (149) (136) Net cash provided by (used for) financing activities (1,471) 6 (567) (321) (153) (139) (66) (61) (419) (519) (258) (6) (15) (3) (9) 5 - (2) 2 5 - (2) (1,114)$ 371$ 628$ 464$ (361)$ 218$ 68$ 354$ 279$ (455)$ (59)$ F Y 2026 Effect of foreign exchange rate fluctuations on cash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash (1) F Y 2025 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
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IV. Other Metrics 1. Online sales primarily include sales originating from our online channel including those that are picked up or shipped from stores and net sales from revenue-generating strategic initiatives. 2. Operating lease cost is included within Occupancy expenses disclosed within the Segment Information footnote of the 10Q and 10K beginning in Q4 2024. 3. The store locations excludes Janie and Jack and Intermix stores beginning FY 2021. During FY 2021, 21 Gap France stores were transitioned from Company-operated store locations to Franchise store locations. During FY 2022, 11 Gap Italy stores and 24 Old Navy Mexico stores were transitioned from Company-operated store locations to Franchise store locations. During FY 2023, 89 Gap China Specialty stores were transitioned from Company-operated store locations to Franchise store locations. 4. Excludes Franchise, acquisitions, divestitures and transitions. Beginning in Q1 2025 store opening/closing activity is presented net. Prior periods shown above have been updated to reflect net presentation. 5. In February 2026, the Board approved a new $1.0 billion share repurchase authorization. The February 2026 repurchase program had $399 million remaining as of August 1, 2026. 6. During Q1 2026, as part of an accelerated share repurchase agreement, the Company paid $200 million and received an initial delivery of approximately 6.9 million shares of its common stock. Subsequent to Q1 2026, the agreement was fully settled on May 5, 2026, and the Company received an additional 1.4 million shares of its common stock. 7. FY 2020 dividend of $0.24 per share was declared in Q1 2020 and paid in Q1 2021. 8. For FY 2026, net cash provided by operating activities includes the impact of a pre-tax gain of $313 million related to a credit card interchange fee litigation settlement, net of legal fees, and a $50 million pre-tax charitable contribution made concurrently during Q1 2026. 9. All fiscal years presented consist of 52 weeks, except the fiscal year ended February 3, 2024 (FY 2023) which consisted of 53 weeks. All quarters presented consist of 13 weeks. $ millions F Y 2021 (9) F Y 2022 (9) F Y 2023 (9) F Y 2024 (9) Q1 Q2 Q3 Q4 FY Q1 Q2 Store and franchise sales 10,239$ 9,651$ 9,346$ 9,332$ 2,107$ 2,440$ 2,368$ 2,470$ 9,385$ 2,162$ 2,379$ Online sales (1) 6,431$ 5,965$ 5,543$ 5,754$ 1,356$ 1,285$ 1,574$ 1,766$ 5,981$ 1,335$ 1,272$ Operating lease cost (2) 947$ 825$ 823$ 891$ 223$ 224$ 227$ 233$ 907$ 229$ 230$ Total ending square footage 33.3 31.8 30.6 30.1 29.9 29.7 29.8 29.6 29.6 29.6 29.5 Company-operated store locations (3) 2,835 2,685 2,562 2,506 2,496 2,486 2,497 2,474 2,474 2,477 2,471 Franchise store locations (3) 564 667 998 1,063 1,009 1,024 1,002 1,012 1,012 999 986 Net Company-operated store openings/(closings) (4) (94) (115) (34) (56) (10) (10) 11 (23) (32) 3 (6) Shares outstanding 371 366 372 374 374 371 372 372 372 361 351 Shares repurchased (5)(6) 9 11 - 3 4 3 - - 7 15 11 Average acquisition cost per share 23.00$ 12.00$ -$ 24.00$ 19.26$ 23.67$ -$ -$ 21.46$ 23.71$ 21.91$ Dividends declared per share (7) 0.36$ 0.60$ 0.60$ 0.60$ 0.165$ 0.165$ 0.165$ 0.165$ 0.66$ 0.175$ 0.175$ Net cash provided by (used for) operating activities (8) 809$ 607$ 1,532$ 1,486$ (140)$ 448$ 299$ 686$ 1,293$ 213$ 337$ Less: Purchases of property and equipment (694) (685) (420) (447) (83) (98) (146) (143) (470) (135) (154) F ree cash flow 115$ (78)$ 1,112$ 1,039$ (223)$ 350$ 153$ 543$ 823$ 78$ 183$ F Y 2026 (9)F Y 2025 (9)
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V. Historical Comparable Sales by Global Brand 1. Due to the 53rd week in fiscal 2023, in order to maintain consistency, comparable sales for the first, second, third and fourth quarters of fiscal 2024 are compared to the 13 weeks ended May 6, 2023, August 5, 2023, November 4, 2023 and February 3, 2024 respectively. Comp sales include the results of Company-operated stores and sales through online channels. The calculation of Gap Inc. Comp sales excludes the results of the franchise and licensing business. A store is included in the Comp sales calculations when it has been open and operated by Gap Inc. for at least one year and the selling square footage has not changed by 15 percent or more within the past year. F Y 2026 Q1 Q2 Q3 Q4 FY Old Navy Global 1% -4% -1% Gap Global 10% 10% 10% Banana Republic Global 2% 3% 2% Athleta Global -11% -12% -11% Gap Inc. 2% -1% 0% F Y 2025 Q1 Q2 Q3 Q4 FY Old Navy Global 3% 2% 6% 3% 3% Gap Global 5% 4% 7% 7% 6% Banana Republic Global 0% 4% 4% 4% 3% Athleta Global -8% -9% -11% -10% -9% Gap Inc. 2% 1% 5% 3% 3% F Y 2024 Q1 (1) Q2 (1) Q3 (1) Q4 (1) FY Old Navy Global 3% 5% 0% 3% 3% Gap Global 3% 3% 3% 7% 4% Banana Republic Global 1% 0% -1% 4% 1% Athleta Global 5% -4% 5% -2% 0% Gap Inc. 3% 3% 1% 3% 3% F Y 2023 Q1 Q2 Q3 Q4 FY Old Navy Global -1% -6% 1% 2% -1% Gap Global 1% -1% -1% 4% 1% Banana Republic Global -8% -8% -8% -4% -7% Athleta Global -13% -7% -19% -10% -12% Gap Inc. -3% -6% -2% 0% -2% F Y 2022 Q1 Q2 Q3 Q4 FY Old Navy Global -22% -15% -1% -7% -12% Gap Global -11% -7% 4% -4% -4% Banana Republic Global 27% 8% 10% -3% 9% Athleta Global -7% -8% 0% -5% -5% Gap Inc. -14% -10% 1% -5% -7% F Y 2021 Q1 Q2 Q3 Q4 FY Old Navy Global 35% 0% -9% -6% 0% Gap Global 29% -5% 7% 10% 8% Banana Republic Global -4% 41% 28% 26% 24% Athleta Global 27% 13% 2% 12% 12% Gap Inc. 28% 3% -1% 3% 6%
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VI. Net Sales by Brand and Geography 1. U.S. includes the United States and Puerto Rico. 2. Primarily consists of net sales from revenue-generating strategic initiatives. Q2'26 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,897$ 654$ 413$ 255$ 4$ 3,223$ Canada 152 81 45 8 - 286 Other regions 12 109 20 1 - 142 Total 2,061$ 844$ 478$ 264$ 4$ 3,651$ Q1'26 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,834$ 608$ 375$ 262$ 4$ 3,083$ Canada 150 68 37 7 - 262 Other regions 12 120 19 1 - 152 Total 1,996$ 796$ 431$ 270$ 4$ 3,497$ Banana Republic Global Banana Republic Global
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VI. Fiscal Year 2025 NET SALES BY BRAND AND GEOGRAPHY 1. U.S. includes the United States and Puerto Rico. 2. Primarily consists of net sales from revenue-generating strategic initiatives. Q4'25 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 2,099$ 822$ 482$ 346$ 6$ 3,755$ Canada 160 92 48 7 - 307 Other regions 14 140 19 1 - 174 Total 2,273$ 1,054$ 549$ 354$ 6$ 4,236$ Q3'25 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 2,049$ 731$ 404$ 250$ 17$ 3,451$ Canada 191 95 44 7 - 337 Other regions 13 125 16 - - 154 Total 2,253$ 951$ 464$ 257$ 17$ 3,942$ Q2'25 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,978$ 581$ 408$ 290$ 28$ 3,285$ Canada 157 76 46 9 - 288 Other regions 15 115 21 1 - 152 Total 2,150$ 772$ 475$ 300$ 28$ 3,725$ Q1'25 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,826$ 545$ 373$ 299$ 22$ 3,065$ Canada 140 61 35 8 - 244 Other regions 15 118 20 1 - 154 Total 1,981$ 724$ 428$ 308$ 22$ 3,463$ Banana Republic Global Banana Republic Global Banana Republic Global Banana Republic Global
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VI. Fiscal Year 2024 NET SALES BY BRAND AND GEOGRAPHY Q4'24 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 2,043$ 756$ 479$ 385$ 16$ 3,679$ Canada 154 88 46 10 - 298 Other regions 15 136 20 1 - 172 Total 2,212$ 980$ 545$ 396$ 16$ 4,149$ Q3'24 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,949$ 683$ 406$ 281$ 21$ 3,340$ Canada 190 95 43 9 - 337 Other regions 11 121 20 - - 152 Total 2,150$ 899$ 469$ 290$ 21$ 3,829$ Q2'24 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,953$ 579$ 414$ 327$ 14$ 3,287$ Canada 159 77 43 10 - 289 Other regions 11 110 22 1 - 144 Total 2,123$ 766$ 479$ 338$ 14$ 3,720$ Q1'24 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,761$ 513$ 383$ 318$ 14$ 2,989$ Canada 146 66 36 10 - 258 Other regions 9 110 21 1 - 141 Total 1,916$ 689$ 440$ 329$ 14$ 3,388$ Banana Republic Global Banana Republic Global Banana Republic Global Banana Republic Global 1. U.S. includes the United States and Puerto Rico. 2. Primarily consists of net sales from revenue-generating strategic initiatives.
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1. Q4 2023 includes incremental sales attributable to the 53rd week. 2. U.S. includes the United States and Puerto Rico. 3. Primarily consists of net sales from revenue-generating strategic initiatives. VI. Fiscal Year 2023 NET SALES BY BRAND AND GEOGRAPHY Q4'23 (1) $ millions Old Navy Global Gap Global Athleta Global Other (3) Total U.S. (2) 2,107$ 768$ 494$ 407$ 17$ 3,793$ Canada 171 99 48 12 - 330 Other regions 10 140 25 - - 175 Total 2,288$ 1,007$ 567$ 419$ 17$ 4,298$ Q3'23 $ millions Old Navy Global Gap Global Athleta Global Other (3) Total U.S. (2) 1,917$ 664$ 398$ 267$ 15$ 3,261$ Canada 193 96 42 10 - 341 Other regions 16 127 20 2 - 165 Total 2,126$ 887$ 460$ 279$ 15$ 3,767$ Q2'23 $ millions Old Navy Global Gap Global Athleta Global Other (3) Total U.S. (2) 1,777$ 542$ 415$ 327$ 11$ 3,072$ Canada 165 76 44 13 - 298 Other regions 19 137 21 1 - 178 Total 1,961$ 755$ 480$ 341$ 11$ 3,548$ Q1'23 $ millions Old Navy Global Gap Global Athleta Global Other (3) Total U.S. (2) 1,659$ 496$ 374$ 309$ 3$ 2,841$ Canada 145 61 36 10 - 252 Other regions 24 135 22 2 - 183 Total 1,828$ 692$ 432$ 321$ 3$ 3,276$ Banana Republic Global Banana Republic Global Banana Republic Global Banana Republic Global
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VI. Fiscal Year 2022 NET SALES BY BRAND AND GEOGRAPHY 1. U.S. includes the United States and Puerto Rico. 2. Primarily consists of net sales from revenue-generating strategic initiatives. Q4'22 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,982$ 709$ 505$ 423$ 2$ 3,621$ Canada 165 91 49 10 - 315 Europe - 35 1 1 - 37 As ia - 181 17 - - 198 Other regions 19 45 6 2 - 72 Total 2,166$ 1,061$ 578$ 436$ 2$ 4,243$ Q3'22 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,936$ 690$ 448$ 326$ 4$ 3,404$ Canada 184 95 47 7 - 333 Europe 1 58 1 1 - 61 As ia - 143 14 - - 157 Other regions 16 55 7 6 - 84 Total 2,137$ 1,041$ 517$ 340$ 4$ 4,039$ Q2'22 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) $1,880 565$ 460$ 335$ 3$ 3,243$ Canada 183 82 53 7 - 325 Europe - 51 2 - - 53 As ia 1 141 18 - - 160 Other regions 26 42 6 2 - 76 Total 2,090$ 881$ 539$ 344$ 3$ 3,857$ Q1'22 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,673$ 497$ 416$ 344$ 3$ 2,933$ Canada 147 64 43 9 - 263 Europe 1 54 1 2 - 58 As ia - 141 16 - - 157 Other regions 20 35 6 5 - 66 Total 1,841$ 791$ 482$ 360$ 3$ 3,477$ Banana Republic Global Banana Republic Global Banana Republic Global Banana Republic Global
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1. U.S. includes the United States, Puerto Rico and Guam. 2. The "Other" column primarily consists of net sales for the Intermix and Janie and Jack brands. The divestiture of Janie and Jack was completed on April 8, 2021. The divestiture of Intermix was completed on May 21, 2021. Additionally, beginning in Q2 2020, net sales from the business-to-business program and beginning in Q4 2021, other revenue generating initiatives are also included. VI. Fiscal Year 2021 NET SALES BY BRAND AND GEOGRAPHY Q4'21 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 2,097$ 761$ 532$ 428$ 2$ 3,820$ Canada 178 100 54 9 - 341 Europe 1 54 2 1 - 58 As ia 1 219 21 - - 241 Other regions 30 30 4 1 - 65 Total 2,307$ 1,164$ 613$ 439$ 2$ 4,525$ Q3'21 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 1,899$ 676$ 410$ 317$ -$ 3,302$ Canada 185 102 47 3 - 337 Europe 1 89 2 - - 92 As ia - 141 14 - - 155 Other regions 20 31 6 - - 57 Total 2,105$ 1,039$ 479$ 320$ -$ 3,943$ Q2'21 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) $2,177 615$ 428$ 340$ 11$ 3,571$ Canada 191 79 43 - - 313 Europe - 116 1 1 - 118 As ia - 135 19 - - 154 Other regions 22 29 4 - - 55 Total 2,390$ 974$ 495$ 341$ 11$ 4,211$ Q1'21 $ millions Old Navy Global Gap Global Athleta Global Other (2) Total U.S. (1) 2,099$ 556$ 333$ 347$ 89$ 3,424$ Canada 159 68 34 - - 261 Europe - 69 3 - - 72 As ia 1 163 16 - - 180 Other regions 21 30 3 - - 54 Total 2,280$ 886$ 389$ 347$ 89$ 3,991$ Banana Republic Global Banana Republic Global Banana Republic Global Banana Republic Global
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Thank You