Katrina O'connell on tariffs
From $GAP The Gap Q1 2026 Earnings Conference Call · · EARNMOAR
“We are updating our assumptions today to reflect section 122 tariffs at a 10% rate on goods received after February 24th through the July 24th deadline. For the remainder of the year, we've assumed tariff rates revert back to level rates incorporated in our original plan. We maintain this assumption based in part on comments from the administration indicating an intention to reimpose higher tariff rates following the expiration of section 122 potentially at levels comparable to those implemented under the regime.”
On , Katrina O'connell, Executive Vice President & Chief Financial Officer at GAP INC, spoke about tariffs during $GAP The Gap Q1 2026 Earnings Conference Call on EARNMOAR.
About Katrina O'connell
During The Gap, Inc.'s first quarter fiscal 2026 earnings conference call on May 28, 2026, Executive Vice President and Chief Financial Officer Katrina O'Connell discussed the company's updated financial outlook and tariff assumptions. O'Connell stated that the company is now assuming a 10% tariff rate on goods received after February 24 through July 24 under Section 122, with rates expected to revert to levels incorporated in the original plan for the remainder of the year. She noted that approximately half of the $80 million in tariff relief is being reserved as a buffer against elevated fuel costs, with the other half reserved for potential pricing investments if the promotional environment intensifies. O'Connell also reported that the company is raising its full-year adjusted earnings per share outlook to $2.30 to $2.40, reflecting growth of 8% to 12% compared to the prior year. She added that The Gap is monitoring for potential recovery of previously paid IPA tariffs where the company is the importer of record, but noted that no benefits from a potential refund are factored into the current outlook due to a lack of certainty.