Apparel maker Gap falls on warning of tariff hit to income

Shares of Old Navy-parent Gap GAP.N slide about 15% to $23.81 premarket

Apparel maker flags tariff-related costs in the range of $250 million to $300 million, but aims to mitigate more than half of that amount

Says U.S. tariffs will pressure its annual operating income; maintains annual forecasts excluding that hit

Expects fiscal 2025 sales to rise 1% to 2% and operating income growth of 8% to 10%

GAP sourced less than 10% of its merchandise from China in 2024 - annual report

Q1 revenue of $3.46 billion beats analysts' estimate of $3.42 billion - data compiled by LSEG

Jefferies cuts PT on GAP to $26 from $29; says performance at brands remains a mixed bag and visibility into profit growth is limited

As of last close, Gap shares up 18% so far this year