Guan Pu issues warning on tariff impact, drops 16% in pre-market trading.

The stock price of Gap Inc. fell 16% in pre-market trading. The company had previously predicted that the tariff impact could be as high as $300 million and disclosed that its Banana Republic and Athleta brands were underperforming. Gap warned that tariffs could result in losses of $2.5-3 billion, but maintained its performance guidance unchanged and stated that they already have strategies in place to offset more than half of the costs. Despite the tariff issue, revenues for the Old Navy and Gap brands increased by 3% and 5% respectively, with strong sales in denim and activewear, while Banana Republic and Athleta faced declining revenues.