Gap Inc. reported strong quarterly sales, primarily driven by robust demand for Old Navy and its namesake brands, exceeding expectations despite facing potential tariff costs estimated between $100 million and $300 million. The company warned that these tariffs could significantly impact its profit margins, leading to a 17% decline in shares during after-hours trading. Despite achieving revenue growth and beating earnings expectations, the outlook for flat sales and substantial tariff-related expenses overshadowed the positive results, prompting concern among investors regarding the potential effects on future profitability.