(MENAFN- AsiaNet News) <p>Gap, Inc. (GAP) shares dropped 15% in after-hours trading on Thursday, as the apparel brand said it faces a $100 million to $150 million impact on its operating income this year despite efforts to mitigate the effects of U.S. tariffs.</p> <p>The company anticipates incurring $250 million to $300 million in additional costs in fiscal 2025, largely driven by increased import expenses. It plans to partially offset these through sourcing adjustments and other efficiency measures.</p> <p>Without considering the impact of tariffs, the company expects operating income to grow 8% to 10% and net sales to increase 1% to 2%.</p> <p>The warning took the sheen off better-than-expected results for the first quarter.</p> <p>Net sales rose to $3.46 billion, beating analyst expectations of $3.42 billion from FactSet.  </p> <p>Comparable sales grew 2%, led by its athleisure brand Athleta and the namesake Gap brand. The company said Gap has been a standout performer over the last couple of quarters, fueled by“style, product newness, innovation, and compelling marketing."</p> <p>Earnings per share were $0.51, also higher than the expected $0.44.</p> <p>Gap imports a sizable volume of its merchandise from China, Vietnam, and Indonesia.</p> <p>On Stocktwits, the retail sentiment shifted to 'extremely bullish' from 'bullish' the previous day.</p> <img> GAP sentiment and message volume as of May 29 | Source: Stocktwits <p>A user indicated that the stock reaction was "a little over done" as the company is implementing a turnaround.</p> <p>Gap shares are up 18.3% this year.</p> <p>For updates and corrections, email newsroom[at]stocktwits[dot]com.<</p>

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