Gap Inc Q3 2025 sales growth delivered solid results, with the company reporting a 3% year-on-year increase in net sales to $3.9 billion for the period ending November 1, 2025. This seventh consecutive quarter of positive comparable sales was fueled by a 3% rise in store revenue and a 2% uptick in online sales, which now comprise 40% of the total. Operating income reached $334 million, yielding an 8.5% operating margin, while net income stood at $236 million, resulting in $0.62 diluted EPS.
Old Navy recorded net sales of $2.3 billion, a 5% gain bolstered by 6% comparable sales growth. The Gap brand achieved a 6% growth in sales and a 7% comparable sales jump, continuing its string of strong results. In contrast, Banana Republic saw sales dip 1% but still improved comps by 4%. Athleta experienced an 11% drop in both revenue and comparable sales.
Driven by Gap Inc Q3 2025 sales growth across core brands, the company raised its full-year net sales outlook to 1.7%-2% and lifted its operating margin prediction to about 7.2%, even as tariffs trimmed gross margins. As of quarter’s end, Gap Inc managed around 3,500 locations worldwide, most directly operated, and plans for about 35 net store closures this fiscal year.
CEO Richard Dickson commented, “We are proud to report that Gap Inc.’s third quarter results exceeded our net sales and margin expectations and delivered the seventh consecutive quarter of positive comparable sales. Our strategy is working and our brands are gaining momentum with our three largest brands – Old Navy, Gap, and Banana Republic – each posting strong comparable sales.” He added, “The strength of our third quarter and quarter-to-date performance positions us well for the holiday selling season and gives us the confidence to increase our full year net sales outlook to the high end of our prior guidance range and raise our full year operating margin outlook. We are focused on executing with excellence and finishing the year strong.”
Gap Inc sales performance continues to demonstrate resilience and adaptability amid evolving retail market conditions.
