Gap, Inc. (The)

Filing receipts

“Operating Expenses 13 Weeks Ended ($ in millions) May 2, 2026 May 3, 2025 Operating expenses $ 972 $ 1,188 Operating expenses as a percentage of net sales 27.8 % 34.3 % Operating margin 12.7 % 7.5 % Operating expenses decreased $216 million, or 6.5 percentage points as a percentage of net sales during the first quarter of fiscal 2026 compared with the first quarter of fiscal 2025, primarily due to the following: • a gain of $313 million related to a credit card interchange fee litigation settlement, net of legal fees; partially offset by • a $50 million charitable contribution made concurrently with the interchange fee litigation settlement; and • an increase in strategic investments.”

“Cost of goods sold increased 1.0 percentage point as a percentage of net sales in the first quarter of fiscal 2026 compared with the first quarter of fiscal 2025, primarily driven by an estimated impact of approximately 2 percentage points from tariff costs net of related mitigation efforts, partially offset by less promotional activity primarily at Gap Global.”

“Occupancy expenses increased 0.3 percentage points as a percentage of net sales in the first quarter of fiscal 2026 compared with the first quarter of fiscal 2025, primarily driven by incremental cost related to our store population.”