According to Gap's financial report released after the close on May 29, in the first quarter of the 2025 fiscal year (as of May 3, 2025), revenue increased by 2% year-on-year to US$3.46 billion, slightly better than Wall Street's average estimate of US$3.42 billion; net profit was US$193 million; diluted earnings per share was US$0.51, which also beat Wall Street's US$0.45 expectations.

Since Trump's reciprocal tariffs are very broad, including Vietnam, China, India, Bangladesh and other major garment exporting countries, which are all subject to high tariffs, Gap's effect of diversifying origin risks is limited. It is estimated that the full-year tariff expenditure will be between US$250 million and US$300 million.

Gap CEO Richard Dickson said that it will reduce the impact of tariffs as much as possible through measures such as expanding purchases of U.S. cotton and further reduce tariff expenditures, which is expected to be halved to US$100 million to US$150 million.

In 2024, the proportion of Gap's ready-to-wear products purchased from China will be less than 10%. Currently, Vietnam is Gap’s largest source of ready-to-wear purchases, followed by India and Indonesia.

However, the financial forecast provided by Gap did not include the impact of potential tariffs. It reiterated that revenue in fiscal year 2025 will grow by 1% to 2%, operating profit will increase by 8% to 10% annually, and it expects gross profit margin in the second quarter to fall at 41.8%, the same as in the first quarter.

On May 30, Gap's stock price fell 20.18% to close at $22.31, with a cumulative decline of 5.59% this year.