Gap, Inc. ( GAP ) released its first-quarter results after Thursday's closing bell. Here's a look at the key details in the report. 

The Details: Gap reported quarterly earnings of 51 cents per share, which beat the consensus estimate of 45 cents. Quarterly revenue came in at $3.46 billion, which beat the Street estimate of $3.42 billion.

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For the first quarter, Gap reported:

Store sales were flat compared to last year. The company ended the quarter with about 3,500 store locations in over 35 countries, of which 2,496 were company-operated.

Online sales increased 6% compared to last year and represented 39% of total net sales.

Ending inventory of $2.1 billion was up 7% compared to last year, primarily resulting from earlier timing of receipts.

Gross margin of 41.8% increased 60 basis points versus last year.

Merchandise margin was flat versus last year.

“Gap Inc. delivered strong first quarter results, exceeding financial expectations and gaining market share for the ninth consecutive quarter,” said CEO Richard Dickson.

“We had positive comp sales for the fifth consecutive quarter, with our two largest brands, Gap and Old Navy, winning in the marketplace, demonstrating the power of our brand reinvigoration playbook,” Dickson added.

Outlook: Gap reaffirmed its fiscal 2025 revenue guidance of $15.25 billion to $15.4 billion, versus the $15.28 billion estimate, but cautioned that if current tariff rates remain, they could result in a gross estimated incremental cost of approximately $250 million to $300 million.

The company said it has strategies to mitigate more than half of that amount and estimates a remaining net impact of about $100 million to $150 million to its fiscal 2025 operating income, primarily weighted to the second half of the year.

GAP Price Action: According to data from Benzinga Pro, Gap stock was down 15.56% at $23.60 in Thursday's extended trading. 

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