Gap Margins Slashed by Tariffs, Sales Dragged by Athleta
A shopper enters an Athleta Inc. store in Santa Monica, California.
Photographer: Patrick T. Fallon/BloombergGap Inc. expects its margins will shrink this year, a sign tariffs are slowing recent turnaround momentum.
Comparable sales rose 1% in the quarter ended August 2, missing analysts’ expectations of almost 2% growth. The miss was driven by a 9% comparable sales decline at Athleta, which lagged behind estimates of a 4% drop.