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Gap stock falls as retailer misses sales expectations, warns tariffs will impact profits

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Gap stock falls as retailer misses sales expectations, warns tariffs will impact profits


Gap stock fell in extended trading on Thursday after the company warned tariffs will impact its profits moving forward.

When Gap last reported results in May, it said it expected tariffs to cost between $100 million and $150 million on a net basis, but on Thursday, it said those costs are now going to be between $150 million and $175 million. 

Its full-year operating margin is expected to be between 6.7% and 7%, down from 7.4% in the previous fiscal year, reflecting a tariff impact between 1 percentage point and 1.10 percentage points.

In its current quarter, its expecting its gross margin to be down between 1.5 and 1.7 percentage points, driven by tariff costs.

Beyond tariffs, the specialty apparel company behind Old Navy, Athleta, Banana Republic and its namesake banner delivered mixed results in its fiscal second quarter. Here’s how Gap performed in the quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

  • Earnings per share: 57 cents vs. 55 cents expected
  • Revenue: $3.73 billion vs. $3.74 billion expected

The company’s reported net income for the three-month period that ended Aug. 2 was $216 million, or 57 cents per share, compared with $206 million, or 54 cents per share, a year earlier. 

Sales rose to $3.73 billion, up slightly from $3.72 billion a year earlier. Sales came in lower than expected and so did comparable sales. During the quarter, comparable sales rose 1%, weaker than the 1.9% rise that analysts had expected, according to StreetAccount.

While Gap, Banana Republic and Old Navy all saw comparable sales rise during the quarter, Athleta dragged down the company’s overall performance with comps down 9%. 

“Clearly, Athleta is a powerful brand in the active space, being the number five brand in the space, but we’re disappointed in the quarter. We have moved away, if you will, from really distinctive performance roots,” CEO Richard Dickson told CNBC in an interview. “We’ve paid a lot of attention, trying to court a new customer, and ultimately didn’t have enough offerings for our core customer. As we balance that out, we’ve been very transparent to say it’s a year of reset for us.” 

Last month, Gap announced that Maggie Gauger, a longtime veteran of Nike, had been tapped as Athleta’s next CEO — the third top executive hired to helm the brand in the last two years. 

The company reaffirmed its fiscal 2025 net sales growth outlook and is continuing to expect revenue to grow between 1% and 2%, in line with estimates of 1.6%, according to LSEG. For the current quarter, Gap is expecting sales to grow between 1.5% and 2.5%, better than the 2% that analysts had estimated, according to LSEG.

To offset the impact of tariffs, Gap is doing what other companies are doing: working with its suppliers, adjusting its sourcing, diversifying its supply chain and taking targeted price increases where appropriate. 

Notably, the company said it doesn’t expect the annualization of tariffs to cause any further declines in operating income in 2026. 

“As it relates to pricing, we’re making targeted adjustments with pricing, as we always do. There isn’t anything that we’ve done that is substantially different,” Dickson said. “We focus on making sure that we’re presenting to our consumer the right value proposition, and ultimately want to make even more sure that we’re sustaining the momentum and market share gains that our playbook has been performing.” 

Just over two years into Dickson’s tenure as Gap’s CEO, the company is in a far different position. It’s seen six straight quarters of comparable sales growth, it’s sitting on a $2.2 billion cash pile and its brands are back at the center of culture and conversation. 

Recently, Gap launched its “Better in Denim” campaign featuring Katseye and Kelis’s 2003 hit “Milkshake.” Dickson said the campaign has been a standout success, delivering 20 million views in the first three days, 400 million total views and 8 billion impressions. It’s also the No. 1 search on TikTok, Dickson said. 

“We could all acknowledge that Gap moved from what was a clothing retailer just a couple years ago, that was overly promotional and didn’t have necessarily a strong voice from a merchandising perspective to consumers, and now today, it is a pop culture brand that’s telling great stories, driving great merchandising initiatives and arguably shaping culture with some of the programs and products and marketing campaigns,” Dickson said. “This is proving that Gap is a powerful pop culture brand, and this is also what our playbook looks like when you get it right.” 

The campaign highlights the efforts Gap is taking to stay competitive in the crucial denim category, especially with Levi’s recent partnership with Beyoncé and American Eagle‘s campaign with Sydney Sweeney. At a time when consumers are pulling back on nice-to-have products like new clothes and accessories, retailers have had to do more to cut through the noise and ensure they’re resonating with consumers. 

Still, as the company continues to make strides in its turnaround plan, Wall Street has come to expect a lot, and Gap has had to work harder to beat expectations. 

During the quarter, its gross margin came in at 41.2%, behind expectations of 41.9%, according to StreetAccount. 

Here’s a closer look at how each brand performed: 

Old Navy: Gap’s largest and most important brand saw sales of of $2.2 billion, up 1% compared with last year. Comparable sales were up 2%, compared with expectations of up 2.2%, according to StreetAccount.

Gap: The namesake banner saw net sales of $772 million, up 1% compared with last year. Comparable sales were up 4%, compared with expectations of 4.1%, according to StreetAccount. Its the seventh consecutive quarter of comparable sales growth.  

Banana Republic: The safari-chic, business essentials brand saw net sales of $475 million, down 1% compared with last year. Comparable sales were up 4%, far ahead of expectations of 0.2%, according to StreetAccount.  

Athleta: The athleisure brand saw sales of $300 million, down 11% compared to last year. Comparable sales were down 9%. The brand’s new CEO is looking to reverse that slump and reconnect with Athleta’s core consumer. 



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Miners prosper as FTSE 100 makes steady progress

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October 13, 2025

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Miners prosper as FTSE 100 makes steady progress



The FTSE 100 recouped some of Friday’s hefty losses, while gold soared once more, as President Donald Trump dialled down his rhetoric in the trade spat between the US and China.

The FTSE 100 index closed up 15.40 points, 0.2%, at 9,442.87. The FTSE 250 ended 262.48 points higher, 1.2%, at 22,064.32, and the AIM All-Share rose 6.14 points, 0.8%, to 792.47.

In European equities on Monday, the CAC 40 in Paris closed up 0.2%, while the DAX 40 in Frankfurt ended up 0.6%.

Stocks in New York were up at the time of the London close, regaining some of Friday’s falls.

Over the weekend, Mr Trump said the US wants to help China, not hurt it, striking a more conciliatory tone days after threatening “massive” additional tariffs on Friday.

“The USA. wants to help China, not hurt it!!!,” he said in Sunday’s post on Truth Social, adding that “respected President Xi [Jinping]…doesn’t want Depression for his country”.

Jim Reid, at Deutsche Bank, said Friday’s developments were a reminder that the underlying tension between the two countries still exists, and he thinks these tensions will probably be a recurring theme in the years ahead as both sides compete on the global stage for dominance.

“China currently holds considerable leverage in the rare earths market and seems keen to use it to secure a better deal – particularly in the chip sector, where the US has imposed export controls. So, this battle is shaping up as rare earths versus AI chips,” he suggested.

The US government shutdown is dragging on, meanwhile. It began at the start of the month.

Since then, a nonfarm payrolls report has gone unpublished.

On Friday, the Bureau of Labour Statistics (BLS) said US inflation data, due this Wednesday, has been pushed back to October 24.

“No other releases will be rescheduled or produced until the resumption of regular government services. This release allows the Social Security Administration to meet statutory deadlines necessary to ensure the accurate and timely payment of benefits,” the BLS said.

Barclays said that September’s data quality “should remain unaffected since collection finished before the shutdown, but prolonged closures may affect October data collection and quality”.

The pound was quoted lower at 1.3331 dollars at the time of the London equity market close on Monday, compared with 1.3338 dollars on Friday.

The euro stood at 1.1569 dollars, lower compared with 1.1616 dollars. Against the yen, the dollar was trading at 152.30 yen, higher compared with 151.87 yen.

The yield on the US 10-year Treasury was quoted at 4.04%, narrowed from 4.07% on Friday. The yield on the US 30-year Treasury stood at 4.62%, trimmed from 4.66%.

On the FTSE 100, gold miners Fresnillo and Endeavour Mining leapt 9.1% and 11% respectively, as gold’s safe haven qualities saw the price of the yellow metal hit fresh highs.

Gold traded at 4,093.56 dollars an ounce on Monday, up from 4,014.76 dollars on Friday.

Copper miners were also in demand as the price of the metal jumped 6.5%. Glencore jumped 3.3% and Antofagasta 5%.

Elsewhere, M&G, up 3%, benefited from an upgrade from Berenberg to ‘buy’ from ‘neutral’.

The broker thinks the UK life insurance sector will see an acceleration in dividend per share growth in the coming years.

AstraZeneca gave back early gains, closing down 0.7%, despite confirming a “historic” drug pricing agreement with the US.

The agreement, which follows a similar accord announced last month with Pfizer, requires AstraZeneca to charge “Most Favoured Nation” pricing – matching the lowest price offered in other wealthy nations – to Medicaid, the US health insurance programme for low-income Americans.

The company added that specific terms of the agreement remain confidential.

In exchange, Trump administration officials agreed to a three-year delay on new tariffs on AstraZeneca, which had previously announced plans to invest 50 billion dollars in the US in response to looming tariff threats.

UBS analyst Matthew Weston said the deal removes uncertainty on Section 232 tariffs.

The agreement is the first with the White House for a non-US drugmaker, with more expected to follow for AstraZeneca’s peers.

On the FTSE 250, Big Yellow Group jumped 15% after Blackstone Europe confirmed it is a potential bidder for the company.

Surrey-based self-storage site operator Big Yellow said it has held meetings with “a small number of parties” that could lead to a takeover offer.

Blackstone Europe, part of New York-based private equity investment manager Blackstone, said any offer for Big Yellow would be via one or more investment funds that it advises.

Oxford Instruments said order intake suffered in the first half of its financial year amid tariff disruption, meaning that full-year revenue is likely to be little changed year-on-year.

Chief executive Richard Tyson said the start of the financial year coincided with the beginning of a “turbulent time in our markets”, and despite an “improving picture” in the second quarter, “we are now assuming that we will not recover the [first half] revenue shortfall”.

In response, shares in the provider of high technology products and services to industry and scientific research communities fell 7.6%.

Brent oil traded at 63.40 dollars a barrel on Monday, up from 63.19 dollars late Friday.

The biggest risers on the FTSE 100 were Endeavour Mining, up 348.00 pence at 3,436.00p, Fresnillo, up 216.00p at 2,592.00p, Antofagasta, up 134.00p at 2,827.00p, Anglo American, up 119.00p at 2,999.00p and Glencore, up 11.40p at 357.25p.

The biggest fallers on the FTSE 100 were BAE Systems, down 31.00p at 1,951.50p, Intertek, down 74.00p at 4,812.00p, British American Tobacco, down 57.00p at 3,788.00p, Babcock International, down 18.00p at 1,211.00p and Burberry, down 17.00p at 1,182.50p.

Tuesday’s global economic diary has UK unemployment and average earnings data.

Tuesday’s UK corporate calendar has full-year results from housebuilder Bellway and a trading statement from miner Rio Tinto.

Contributed by Alliance News



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EPFO allows up to 100% part PF withdrawal: Digital services simplified; what it means for your savings – The Times of India

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October 13, 2025

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EPFO allows up to 100% part PF withdrawal: Digital services simplified; what it means for your savings – The Times of India


In a major reform aimed at improving ease of access and flexibility for over seven crore subscribers, the Employees’ Provident Fund Organisation (EPFO) board on Monday approved liberalised partial withdrawal rules, allowing members to withdraw up to 100 per cent of their EPF balance.The Central Board of Trustees (CBT), headed by Labour Minister Mansukh Mandaviya, announced a series of key decisions during its meeting, including simplification of withdrawal provisions, introduction of the Vishwas Scheme to reduce litigation, and a digital transformation plan under EPFO 3.0, PTI reported.According to a Labour Ministry statement, 13 complex provisions for partial withdrawals have been merged into a single, streamlined framework categorised under three heads — Essential Needs (illness, education, marriage), Housing Needs, and Special Circumstances.Members will now be able to withdraw up to 100 per cent of their eligible provident fund balance, including both employee and employer contributions. Withdrawal limits for education and marriage have been liberalised, allowing up to 10 times for education and 5 times for marriage, compared to the earlier combined cap of three partial withdrawals.To enhance accessibility, the minimum service requirement for all types of withdrawals has been uniformly reduced to 12 months. Under the Special Circumstances category, members will no longer be required to specify reasons for withdrawal, removing a major cause of claim rejections and grievances.In a key safeguard, 25 per cent of the member’s account contributions will now be earmarked as a minimum balance to ensure continued accumulation of retirement savings. This will allow members to benefit from EPFO’s high interest rate of 8.25% per annum and compound returns for long-term corpus building.The rationalised withdrawal rules are expected to pave the way for 100 per cent auto-settlement of claims without any documentation, ensuring ease of living for subscribers. Additionally, the period for premature final settlement of EPF has been increased from two months to 12 months, while final pension withdrawal will now be allowed after 36 months instead of two.The CBT also approved the Vishwas Scheme to address long-pending litigations arising from penal damages on delayed PF remittances. As of May 2025, penal damages worth Rs 2,406 crore were outstanding, with over 6,000 cases pending across various forums, including the Supreme Court and High Courts.Under the new scheme, penal damages will be reduced to a flat rate of 1 per cent per month, with graded rates of 0.25 per cent for defaults up to two months and 0.50 per cent for defaults up to four months. The scheme will remain operational for six months, extendable by another six months, and covers ongoing, finalised, and pre-adjudication cases under Section 14B. All pending cases will stand abated upon compliance under the scheme.To improve pensioner convenience, the Board approved an MoU with India Post Payments Bank (IPPB) to provide doorstep Digital Life Certificate (DLC) services to EPS’95 pensioners at no cost. The Rs 50 per certificate charge will be fully borne by EPFO. This initiative will especially benefit pensioners in remote and rural areas, enabling home-based certificate submission and ensuring uninterrupted pension disbursal.As part of EPFO 3.0, the board approved a comprehensive member-centric digital transformation framework. The new hybrid design will integrate core banking solutions with cloud-native, API-first, microservices-based systems covering account management, ERP, compliance, and customer experience.This transformation aims to enable faster, automated claim settlements, instant withdrawals, multilingual self-service, and seamless payroll-linked contributions — reinforcing EPFO’s commitment to transparency, efficiency, and technology-driven governance.Additionally, the Central Board approved the appointment of four fund managers to handle EPFO’s debt portfolio for five years. The selected firms are SBI Funds Management Limited, HDFC AMC Limited, Aditya Birla Sun Life AMC Limited, and UTI AMC Limited. The move, recommended by the Selection and Investment Committees, is expected to strengthen risk diversification and ensure prudent management of provident fund investments in line with long-term objectives.Labour Minister Mandaviya also inaugurated a series of digital initiatives aimed at enhancing transparency, efficiency, and user experience in service delivery, reinforcing EPFO’s goal of ensuring ease of living for members and pensioners alike





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Indian Railways’ Twin Good News: Second Vande Bharat Sleeper Rollout; Reduced Journey Time for UP, Bihar, Bengal – Details

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October 13, 2025

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Indian Railways’ Twin Good News: Second Vande Bharat Sleeper Rollout; Reduced Journey Time for UP, Bihar, Bengal – Details


Indian Railways Good News: The Indian Railways is set to bring more good news for passengers in the coming days. While the Vande Bharat Sleeper may be inducted into regular service by the end of this month, the national transporter is also working to gradually increase its operational sectional speed to 160 kmph. Trials have already commenced on a 190 km stretch between Ghaziabad and Tundla, which will help reduce travel time between New Delhi and key destinations in Uttar Pradesh, Bihar, and West Bengal.

Vande Bharat Sleeper: Second Rake Ready

Passengers across India have been eagerly awaiting the launch of the Vande Bharat Sleeper. Railway Minister Ashwini Vaishnaw recently confirmed that operations will begin once the second rake of the train is ready, allowing the service to run from both ends of the designated route.

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With the first rake already completed, anticipation for the second one is high. Videos circulating on social media show the second Vande Bharat Sleeper rake being rolled out from the BEML plant. However, reports suggest that this rake is still unfinished in terms of interiors and will be sent back to BEML after oscillation trials conducted jointly by the North Central Railway, West Central Railway, and Western Railway.

For context, the Indian Railways has already completed trials of the first Vande Bharat Sleeper coaches, and if Minister Vaishnaw’s timeline holds true, the train could enter operations by the end of this month. The Delhi–Howrah (West Bengal) route, passing through Bihar, is expected to be the first corridor for the Vande Bharat Sleeper’s debut.

Efforts to Reduce Travel Time

Railway enthusiasts know that most Indian Railways express trains operate at an average speed of 80–110 kmph. Even the Vande Bharat Express — designed for 160–180 kmph — currently runs at a maximum of 120 kmph on select sections. These speed limitations often lead to congestion across the network, prompting the Railways to invest heavily in infrastructure upgrades.

To address this, the Railways has been steadily increasing sectional speeds. Currently, over 23,000 km of track support operations at around 130 kmph. The latest initiative involves 160 kmph Kavach trials on the Tundla–Aligarh section of the New Delhi–Howrah route, covering a 190 km stretch between Ghaziabad and Tundla Junction.

If these trials succeed, travel time between New Delhi and major cities in Uttar Pradesh, Bihar, and West Bengal could be reduced by several hours, marking a major leap forward in passenger convenience and rail efficiency.





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