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Torrid vs The Gap: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Torrid Holdings Inc (CURV)

The Gap, Inc. (GAP)

Q3 2026
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Gap Q2 Beat and Guidance Raise Offset by Old Navy Weakness and Tariffs

  • Q2 Earnings Beat and Raised Guidance Gap beat Q2 earnings estimates with $0.52 per share and raised full-year profit guidance to $2.35–$2.45, lifting shares roughly 13%.

    This was the primary positive catalyst for the stock during the period.

  • Gap Brand Momentum The Gap brand posted 10% comparable sales growth for an 11th straight quarter, aided by celebrity partnerships and Middle East expansion.

    This shows continued strength in a key brand, supporting the positive earnings surprise.

  • Old Navy Sales Decline and CEO Change Old Navy, nearly 60% of revenue, saw a 4% sales drop—its first negative comparable quarter in 12 quarters—prompting a new CEO appointment.

    This is a major negative development that offsets the positive earnings news.

  • Tariff Costs and One-Time Margin Boost A 12.5% US tariff on Vietnam raises supply-chain costs, overall sales fell 2%, and much of the gross margin gain came from one-time tariff refunds rather than core operations.

    This highlights underlying risks and the unsustainable nature of some profit improvement.

August 2026
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Gap Q2 Beat and Guidance Raise Offset by Old Navy Weakness and Tariffs

  • Q2 Earnings Beat and Raised Guidance Gap beat Q2 earnings estimates with $0.52 per share and raised full-year profit guidance to $2.35–$2.45, lifting shares roughly 13%.

    This was the primary positive catalyst for the stock during the period.

  • Gap Brand Momentum The Gap brand posted 10% comparable sales growth for an 11th straight quarter, aided by celebrity partnerships and Middle East expansion.

    This shows continued strength in a key brand, supporting the positive earnings surprise.

  • Old Navy Sales Decline and CEO Change Old Navy, nearly 60% of revenue, saw a 4% sales drop—its first negative comparable quarter in 12 quarters—prompting a new CEO appointment.

    This is a major negative development that offsets the positive earnings news.

  • Tariff Costs and One-Time Margin Boost A 12.5% US tariff on Vietnam raises supply-chain costs, overall sales fell 2%, and much of the gross margin gain came from one-time tariff refunds rather than core operations.

    This highlights underlying risks and the unsustainable nature of some profit improvement.

Latest
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Gap's profit beat and raised outlook offset Old Navy and Athleta weakness

  • Q2 profit beat and raised full-year earnings outlook Gap reported Q2 adjusted earnings of $0.52 per share, beating the $0.50 estimate, and raised its full-year adjusted EPS outlook to $2.35–$2.45. Shares jumped about 13% on the news. The raised profit guidance signals management confidence and supports a higher stock price.

    This is the core positive event that drove GAP shares up sharply this period.

  • Old Navy sales slump and new CEO appointment Old Navy, nearly 60% of Gap's revenue, posted a 4% sales drop and its first negative comparable sales in 12 quarters. Gap named retail veteran Michael Francis as its new CEO. The weakness drags on overall results, but the leadership change aims to fix the brand.

    Old Navy's decline is the biggest drag on Gap's overall performance and a key reason the stock's rally is not stronger.

  • Athleta remains in a deep slump with no permanent leader Athleta has posted negative comparable sales for nearly two years, and its top executive left for Lululemon, leaving the division without a permanent leader. Management warned the brand will keep weighing on results. This ongoing weakness limits Gap's overall growth.

    Athleta's prolonged troubles are a persistent counterweight to Gap's otherwise improving profit picture.

  • Gap brand momentum and new growth initiatives Gap brand comparable sales rose 10% for an 11th straight quarter. The company launched celebrity and entertainment partnerships—Hailey Bieber denim, Reed Krakoff handbags, a boy band JYT collaboration—and expanded in the Middle East. These efforts aim to sustain customer engagement and future sales.

    These initiatives show how Gap plans to keep its core brand growing and offset weaker divisions.

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Gap's earnings beat and new Old Navy CEO lift shares, but tariffs and weak sales weigh

  • Q2 earnings beat and raised outlook Gap reported adjusted earnings of 52 cents per share, beating the 48-cent consensus, and raised its full-year profit outlook to $2.35-$2.45. This shows the company is more profitable than expected, which pushes the stock up.

    This is the main new event that directly caused the stock to surge.

  • New Old Navy CEO appointed Gap named Michael Francis as CEO of Old Navy, its largest brand, starting November 2. Investors hope he can turn around the struggling brand, which has seen declining sales, and this optimism lifts the stock.

    This is a new leadership change that investors see as a potential fix for a key problem.

  • Vietnam tariff hits supply chain Vietnam, a key production base for Gap, was hit with a 12.5% US tariff, higher than rivals like Bangladesh and Indonesia. This raises Gap's costs and makes its supply chain less competitive, which could hurt profits and push the stock down.

    This is a new tariff event that directly affects Gap's cost structure.

  • Weak sales and reliance on tariff refunds Gap's overall sales fell 2% and same-store sales dropped 1%. Also, most of the gross margin improvement came from one-time tariff refunds, not core operations. This suggests underlying business is still weak, which could limit future gains.

    This is a new detail from the earnings report that provides a counterweight to the positive earnings beat.