Gap expects tariffs to impact second-quarter gross margins
The company's shares fell despite beating Wall Street expectations for first-quarter sales as more customers shopped for its Old Navy and namesake brands following a style refresh over the past few quarters. The results come at a time when most retailers including Walmart and Target have struck a cautious tone due to the impact of U.S. President Donald Trump's tariffs on global trading partners. Gap, which bought less than 10% of its merchandise, by dollar value, from factories in China in fiscal 2024, said it expects incremental costs from tariffs of about $250 million to $300 million but has strategies to mitigate more than half of that amount.
Reuters
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51 minutes ago
