On May 29, Gap, Inc declined 8.09% in after-hours trading, trading at approximately $23.53/share, with trading volume of $3.09 million. The sharp pullback came immediately after the company released its latest quarterly earnings report.

Ahead of the release, consensus estimates projected quarterly revenue of $3.523 billion, representing a 2.98% year-over-year increase, while adjusted earnings per share were expected at $0.37, reflecting an 18.74% year-over-year decline. EBIT was forecast at $188 million, down 18.00% from the prior year. Multiple institutions had maintained bullish views heading into the report, citing improved inventory quality, reduced promotional intensity, and expectations that Old Navy and Athleta would serve as key engines for same-store sales recovery.

The magnitude of the after-hours selloff suggests that actual results or forward guidance fell short of the optimistic expectations that had been priced in. Gap operates four major brands — Old Navy, Gap, Banana Republic, and Athleta — as a leading omnichannel apparel retailer serving global consumers through owned stores, franchise locations, and e-commerce channels.

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