Gap, Inc. (NYSE:GAP) shares are trading lower Friday after the company reported first-quarter earnings on Thursday after the market closed and warned that tariffs could result in a gross estimated incremental cost of about $250 million to $300 million.

What To Know: Gap posted earnings per share of 51 cents, beating the consensus estimate of 45 cents. In addition, the company reported sales of $3.46 billion, beating the consensus estimate of $3.42 billion, and representing a 2% year-over-year increase.

Online sales increased 6% year-over-year and store sales were flat compared to last year.

Comparable sales were up 2% year-over-year.

Outlook: Gap reaffirmed its fiscal-year 2025 sales guidance of between $15.25 billion to $15.40 billion, versus the consensus estimate of $15.28 billion. However, the company reported that tariffs could result in a gross estimated incremental cost of about $250 million to $300 million.

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GAP Price Action: At the time of writing, Gap shares are trading 20.2% lower at $22.32, according to data from Benzinga Pro.

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