Shares of clothing and accessories retailer Gap (NYSE:GAP)
fell 20.3% in the afternoon session after the company reported underwhelming first-quarter 2025 results.
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The apparel maker expects Q2 revenue to be flat year-on-year, while for the rest of the fiscal year 2025, the firm believes Trump’s tariffs could result in a $100 million hit to its operating income.
Clothing and accessories retailer Gap (NYSE:GAP) announced better-than-expected revenue in Q1 CY2025, with sales up 2.2% year on year to $3.46 billion. Its GAAP profit of $0.51 per share was 13.2% above analysts’ consensus estimates.
Gap cautions that if current tariff rates remain, they could result in a net impact of about $100 million to $150 million to its fiscal 2025 operating income.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Large-cap stocks surged in the last week. CoreWeave, Super Micro, Coinbase, NRG Energy, Astera Labs, First Solar, Exelixis, Rocket Lab, Hims & Hers, On Holding and Gap were the top performers.
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
