economy
March 5, 2026
Historic winter storms weigh on Gap, Old Navy performance after 800 temporary store closures
Gap has been on a steady upswing of growth but saw worse than expected results during its holiday quarter after historic winter storms led to store closures.
TL;DR
- Historic winter storms led to approximately 800 temporary store closures at their peak, impacting Gap's holiday quarter performance.
- Old Navy experienced worse-than-expected comparable sales due to the weather disruptions.
- Gap's overall fiscal fourth quarter results missed earnings expectations but met revenue consensus, with sales rising about 2% year-over-year.
- The Gap namesake banner showed strong performance with sales up 8% and comparable sales up 7%.
- Banana Republic reported positive comparable sales for the third consecutive quarter, up 4%.
- Athleta's sales continued to decline, with revenue down 11% and comparable sales down 10%.
- The company's CEO is preparing to enter the next phase of the turnaround plan, focusing on 'building momentum' and growing the core apparel business.
- Gap's outlook for the current quarter and full year is largely in line with expectations, with projected revenue growth between 1%-2% and 2%-3%, respectively.
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