Angelica Ballesteros
2 min read
We recently published a list of Investors Are Dumping These 10 Stocks. The Gap, Inc. (NYSE:GAP) is one of the worst-performing stocks on Thursday.
The Gap Inc. saw its share prices drop by 4 percent at intraday trading on Thursday at $21.59 apiece as investors soured on the US-China trade deal that was said to have focused only on rare earth minerals.
On Thursday, the US and China progressed on their two-day trade negotiations, but existing tariffs on each other’s goods were said to have remained in place.
Just recently, The Gap, Inc. (NYSE:GAP) provided a cautious business outlook for the rest of the year.
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In its earnings release, The Gap, Inc. (NYSE:GAP) said it expects to book between $250 million and $300 million of incremental costs if President Donald Trump’s tariff rates of 30 percent on China and 10 percent on other countries remain.
“The company currently has strategies to mitigate more than half of that amount. After considering these mitigation strategies, the company estimates a remaining net impact of about $100 million to $150 million to fiscal 2025 operating income, primarily weighted to the back half of the year,” it underscored.
Excluding the impact of tariffs, The Gap, Inc. (NYSE:GAP) said it was expecting to post a 1 to 2 percent growth in net sales for the full year 2025, with operating income between 8 and 10 percent. The second quarter, however, is expected to remain flat year-on-year.
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READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None.
