Gap shares tumble 14% as retailer cuts sales guidance after disappointing Old Navy performance Gap’s overall sales guidance was reduced after its largest brand, Old Navy, experienced weaker-than-expected comparable sales growth. However, the company raised its adjusted earnings per share forecast due to favorable tax rates and interest income. While Old Navy’s performance was sluggish, Gap’s namesake brand saw significant sales growth.

• Old Navy’s comparable sales grew 1%, below the expected 3%, leading Gap to cut its companywide sales guidance.
• Gap raised its adjusted earnings per share outlook to between $2.30 and $2.40.
• Gap’s namesake brand saw comparable sales soar 10%, significantly exceeding analyst expectations.
• Banana Republic experienced positive comparable sales growth for the fourth consecutive quarter, though below expectations.
• Athleta’s sales continued to decline, with comparable sales down 11%.