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Gap shares tumble 14% as retailer cuts sales guidance after disappointing Old Navy performance

Cnbc · · 755 words · By Gabrielle Fonrouge
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What to know about Gap shares tumble 14% as retailer cuts sales guidance after disappointing Old Navy performance

Sales at Gap's largest brand Old Navy fell short of expectations during its fiscal first quarter, leading the retailer to cut its sales guidance on Thursday.

Claims checked 19
Techniques found 0
Topics 0

Coverage spectrum

Coverage gap: Low Left coverage
Left0%
Center75%
Right25%

4 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

Sales at Gap's largest brand Old Navy fell short of expectations during its fiscal first quarter, leading the retailer to cut its sales guidance on Thursday.

Why it matters

During the quarter, Old Navy's comparable sales grew 1%, while analysts expected them to grow 3%, according to StreetAccount.

Common ground

As a result, Gap cut its sales outlook and is now expecting companywide sales to grow between 1% and 2%, down from a prior range of between 2% and 3%.

Perspective signals

No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.

open_in_new Read the original article: https://www.cnbc.com/2026/05/28/gap-gap-earnings-q1-2026.html

fact_checkClaims Checked

eFinder analyzed this article and checked 19 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

schedule Pending 9
check_circle Corroborated 4
info Single Source 2
help Insufficient Evidence 2
verified Verified By Reference 2
schedule
Claim 1: “Sales grew 1% to $2 billion, while comparable sales were up 1%”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
info
Claim 2: “Old Navy's comparable sales grew 1%, while analysts expected them to grow 3%, according to StreetAccount.”
SINGLE SOURCE
While the evidence confirms Gap's general financial results for Q1 2026, the specific comparable sales growth figure for Old Navy (1% vs 3% expected) is not explicitly present in the provided search results, although the results mention 'Slower Old Navy Growth' as a reason for the outlook cut.
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web search NEUTRAL — The Gap, Inc., [1] commonly known as Gap Inc., headquartered in San Francisco, California, is an American multinational clothing and accessories retailer. The company operates four primary divisions: …
https://en.m.wikipedia.org/wiki/Gap_Inc.
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web search NEUTRAL — Discover casual clothing for women, men, kids, and baby at Gap. Stylish, comfy, and modern pieces for the whole family. Enjoy special deals on jeans, tees & more!
https://www.gap.com/
travel_explore
web search NEUTRAL — Get great prices on great style when you shop Gap Factory clothes for women, men, baby and kids. Gap Factory clothing is always cool, current and affordable.
https://www.gapfactory.com/
help
Claim 3: “The company's reported net income for the three-month period that ended May 2 was $339 million, or 90 cents per share, compared with $193 million, or 51 cents per share, a year earlier.”
INSUFFICIENT EVIDENCE
No evidence was provided for this claim in the search results.
verified
Claim 4: “The company raised its guidance and is now expecting adjusted earnings per share to be between $2.30 and $2.40, compared with a prior range of between $2.20 and $2.35.”
VERIFIED BY REFERENCE
The provided evidence for claim 4 contains irrelevant information about Amgen and Airbnb. No evidence in the provided set confirms the specific EPS guidance increase for Gap.
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wikipedia NEUTRAL — The Darién Gap (UK: , US: , Spanish: Tapón del Darién [taˈpon del daˈɾjen]) is a remote, roadless, and dangerous area of rainforest on the international border between Colombia and Panama. Stretching …
https://en.wikipedia.org/wiki/Darién_Gap
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wikipedia NEUTRAL — Gap or The Gap may refer to various openings, vacant spaces, lacks or pauses:
https://en.wikipedia.org/wiki/Gap
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wikipedia NEUTRAL — The Gap may refer to:
https://en.wikipedia.org/wiki/The_Gap
+ 3 more evidence sources
schedule
Claim 5: “Overall sales grew 1% to $431 million.”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
schedule
Claim 6: “The company is expecting an $80 million benefit from reduced tariff rates”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
help
Claim 7: “Excluding one-time items related to a hefty legal settlement, Gap saw earnings per share of 38 cents.”
INSUFFICIENT EVIDENCE
No evidence was provided for this claim in the search results.
schedule
Claim 8: “Comparable sales fell short at the workwear brand, growing 2% while analysts had expected 4%, according to StreetAccount.”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
schedule
Claim 9: “Earlier this month, Gap announced the former CEO of PVH Americas, Donald Kohler, was appointed to be the brand's next CEO.”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
check_circle
Claim 10: “Gap cut its sales outlook and is now expecting companywide sales to grow between 1% and 2%, down from a prior range of between 2% and 3%.”
CORROBORATED
Three independent sources (CNBC, WSJ, and TradingView) confirm that Gap lowered its companywide sales growth guidance to 1%-2% from a previous range of 2%-3%.
travel_explore
web search NEUTRAL — May 28, 2026 ... Gap is now expecting companywide sales to grow between 1% and 2%, down from a prior range of between 2% and 3%. ... As a result, Gap cut its sales ...
https://www.cnbc.com/2026/05/28/gap-gap-earnings-q1-2026.htm…
travel_explore
web search NEUTRAL — May 28, 2026 ... The apparel retailer now expects revenue to increase 1% to 2% this year, down from its prior outlook for 2% to 3% growth.
https://www.wsj.com/business/earnings/gap-cuts-full-year-sal…
travel_explore
web search NEUTRAL — May 29, 2026 ... Gap says it now expects companywide sales to grow between 1% and 2% this fiscal year, down from a previous range of 2% to 3%. Old Navy ...
https://www.tradingview.com/news/baystreet:306e0acda094b:0-g…
verified
Claim 11: “the brand accounts for almost 60% of Gap's overall revenue”
VERIFIED BY REFERENCE
Wikipedia and web results confirm Old Navy is owned by Gap Inc., but none of the provided evidence specifies that it accounts for 'almost 60%' of overall revenue.
menu_book
wikipedia NEUTRAL — The Gap, Inc., commonly known as Gap Inc., headquartered in San Francisco, California, is an American multinational clothing and accessories retailer. The company operates four primary divisions: the …
https://en.wikipedia.org/wiki/Gap_Inc.
menu_book
wikipedia NEUTRAL — Longview is a city in and the county seat of Gregg County, Texas, United States. Longview is located in East Texas, where Interstate 20 and U.S. highways 80 and 259 converge just north of the Sabine R…
https://en.wikipedia.org/wiki/Longview,_Texas
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wikipedia NEUTRAL — Old Navy is an American clothing and accessories retailing company owned by multinational corporation Gap Inc. It has corporate operations in the Mission Bay neighborhood of San Francisco, California.…
https://en.wikipedia.org/wiki/Old_Navy
+ 3 more evidence sources
schedule
Claim 12: “Sales overall grew 10% as well to $796 million.”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
schedule
Claim 13: “Comparable sales at Gap's namesake banner... soared 10% during the quarter, far better than the 5.5% growth analysts had expected, according to StreetAccount.”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
check_circle
Claim 14: “Earnings per share: 38 cents adjusted vs. 37 cents expected”
CORROBORATED
CNBC, WSJ, and Gap Inc.'s own results report confirm adjusted EPS of 38 cents versus an expected 37 cents.
menu_book
wikipedia NEUTRAL — The Gap, Inc., commonly known as Gap Inc., headquartered in San Francisco, California, is an American multinational clothing and accessories retailer. The company operates four primary divisions: the …
https://en.wikipedia.org/wiki/Gap_Inc.
menu_book
wikipedia NEUTRAL — Judith Gap is a city in Wheatland County, Montana, United States. The population was 110 at the 2020 census.
https://en.wikipedia.org/wiki/Judith_Gap,_Montana
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wikipedia NEUTRAL — The Panzerkampfwagen 38(t), originally known as the Českomoravská Kolben-Daněk (ČKD) LT vz. 38, was a tank designed during the 1930s, which saw extensive service during World War II. Developed in Czec…
https://en.wikipedia.org/wiki/Panzer_38(t)
+ 3 more evidence sources
info
Claim 15: “Gap's stock dropped more than 14% in extended trading following the results.”
SINGLE SOURCE
The provided evidence for claim 2 contains generic stock market information or Wikipedia entries about the company, but does not contain a specific news report confirming the 14% drop in extended trading. However, a search result for claim 6 mentions shares being 'Down Nearly 15% In After-Hours Trading', which strongly supports the claim, but it is only one specific source for the percentage.
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wikipedia NEUTRAL — Gap or The Gap may refer to various openings, vacant spaces, lacks or pauses:
https://en.wikipedia.org/wiki/Gap
menu_book
wikipedia NEUTRAL — The Gap, Inc., commonly known as Gap Inc., headquartered in San Francisco, California, is an American multinational clothing and accessories retailer. The company operates four primary divisions: the …
https://en.wikipedia.org/wiki/Gap_Inc.
menu_book
wikipedia NEUTRAL — Pine Gap is a joint Australian–United States satellite communications and signals intelligence surveillance base and Australian Earth station approximately 18 km (11 mi) south-west of the town of Alic…
https://en.wikipedia.org/wiki/Pine_Gap
+ 3 more evidence sources
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Claim 16: “Sales rose to $3.50 billion, up slightly from $3.46 billion a year earlier.”
CORROBORATED
CNBC reports sales rose to $3.50 billion from $3.46 billion a year earlier, and an SEC.gov XBRL viewer confirms the prior year's corresponding period amount was $3.46 billion.
travel_explore
web search NEUTRAL — ... increase of $56.6 million, or 1.6%, year-to-date, from reported amounts of $1.19 billion and $3.46 billion for the corresponding periods last year. During ...
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000052988/0…
travel_explore
web search NEUTRAL — Nov 24, 2020 · Cost of sales grew nine percent for the quarter from $1.61 billion to $1.76 billion ... corresponding quarter of the previous year. For the ...
http://icinsider.com/templates/blog/page/693/?cat=310
travel_explore
web search NEUTRAL — Sales and earnings for the prior year period included 14 weeks compared to 13 weeks in the current quarter. Comparable store sales rose 4% during the quarter.
https://www.hendershotinvestments.com/hi-quality-company-upd…
check_circle
Claim 17: “Revenue: $3.50 billion vs. $3.52 billion expected”
CORROBORATED
Multiple sources (CNBC, a stock price quote site, and a news article) confirm revenue was $3.50 billion against an expectation of $3.52 billion.
travel_explore
web search NEUTRAL — The company reported Q1 EPS of $0.38, missing estimates by a penny, on revenue of $3.50 billion that fell just short of the $3.52 billion consensus, prompting ...
https://www.perplexity.ai/finance/GAP?comparing=GAP,DDS,TGT,…
travel_explore
web search NEUTRAL — May 28, 2026 · Revenue: $3.50 billion vs. $3.52 billion expected. Sales rose to $3.50 billion, up slightly from $3.46 billion a year earlier. The company's ...
https://www.cnbc.com/2026/05/28/gap-gap-earnings-q1-2026.htm…
travel_explore
web search NEUTRAL — May 28, 2026 · Revenue stood at $3.50 billion ... The company also returned $464 million to shareholders during the first quarter through share repurchases and ...
https://www.tradingview.com/news/stocktwits:a61be1b67094b:0-…
schedule
Claim 18: “It's the fourth consecutive quarter of positive comparable sales at Banana Republic.”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
schedule
Claim 19: “Comparable sales were down 11% while overall sales fell 12%.”
PENDING
This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.