Gap's Q1 earnings beat overshadowed by up to $300M tariff hit
Gap (GAP) stock is plunging in after-hours trading as investors focus on the retailer's expected tariff hit rather than its first quarter earnings beat. The company's revenue was $3.46 billion, compared to the $3.42 billion expected, while earnings per share (EPS) came in at $0.51, better than the $0.45 analysts estimated. The retailer said it expects the tariff impact to cost up to $150 million in its 2025 operating income and $250–300 million in its gross estimated incremental cost. Gap maintained its full-year outlook but noted that this guidance doesn't reflect potential tariff impacts. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.