Net sales increased 3% versus last year with
market share gains for the 5th consecutive
quarter
Comparable sales were positive at all four
brands in the portfolio
Operating margin expansion reflects
improvement in gross margin and operating expense
SAN
FRANCISCO, May 30, 2024 /PRNewswire/ -- Gap Inc.
(NYSE: GPS), the largest specialty apparel company in the U.S. and
a house of iconic brands including Old Navy, Gap, Banana Republic,
and Athleta, today reported financial results for its first quarter
ended May 4, 2024.
"Gap Inc. delivered a strong quarter that exceeded expectations
across key metrics. We gained market share for the 5th
consecutive quarter with positive comparable sales at all brands,
demonstrating improved relevance with our customers as we execute
against our brand reinvigoration playbook. Our first quarter
results are giving us confidence to raise both sales and operating
income guidance for the full year," said Gap Inc. President and
Chief Executive Officer, Richard
Dickson. "We are on a journey to become a high-performing
house of iconic American brands that shape culture. While this will
take time, perseverance, and rigor, we are excited about the
opportunities ahead as we unlock the power of Gap Inc."
First Quarter Fiscal 2024 - Financial Results
- Net sales of $3.4 billion
were up 3% compared to last year. Comparable sales were up
3% year-over-year. Due to the 53rd week in fiscal 2023,
in order to maintain consistency, comparable sales for the first
quarter of fiscal 2024 are compared to the 13 weeks ended
May 6, 2023.
- Store sales increased 3% compared to last year. The
company ended the quarter with 3,571 store locations in over 40
countries, of which 2,554 were company operated.
- Online sales increased 5% compared to last year and
represented 38% of total net sales.
- Gross margin of 41.2% increased 410 basis points versus
last year's reported gross margin and increased 400 basis points
versus last year's adjusted gross margin, which excludes
$4 million in restructuring costs.
- Merchandise margin increased 340 basis points versus
last year on a reported basis and 330 basis points versus last year
on an adjusted basis, primarily driven by lower commodity
costs.
- Rent, occupancy, and depreciation (ROD) as a percent of
sales leveraged 70 basis points versus last year.
- Operating expense was $1.2
billion.
- Operating income was $205
million; operating margin of 6.1%.
- The effective tax rate was 24%.
- Net income of $158
million; diluted earnings per share of $0.41.
Balance Sheet and Cash Flow Highlights
- Ended the quarter with cash, cash equivalents and short-term
investments of $1.7 billion, an
increase of 48% from the prior year.
- Net cash from operating activities was $30 million. Free cash flow, defined as
net cash from operating activities less purchases of property and
equipment, was negative $63
million.
- Ending inventory of $1.95
billion was down 15% compared to last year.
- Capital expenditures were $93
million.
- Paid a first quarter dividend of $0.15 per share, totaling $56 million. The Company's Board of Directors
approved a second quarter fiscal 2024 dividend of $0.15 per share.
Additional information regarding adjusted gross margin and free
cash flow, each of which are non-GAAP financial measures, is
provided at the end of this press release along with a
reconciliation of these measures from the most directly comparable
GAAP financial measures for the applicable period.
First Quarter Fiscal 2024 – Global Brand Results
Comparable Sales
|
First
Quarter
|
|
2024
|
|
2023
|
Old Navy
|
3 %
|
|
(1) %
|
Gap
|
3 %
|
|
1 %
|
Banana
Republic
|
1 %
|
|
(8) %
|
Athleta
|
5 %
|
|
(13) %
|
Gap Inc.
|
3 %
|
|
(3) %
|
Old Navy:
- First quarter net sales of $1.9
billion were up 5% compared to last year. Comparable sales
were up 3%. This represents the third consecutive quarter of
positive comparable sales at the brand as its continued focus on
operational rigor is beginning to build improved consistency in
performance.
Gap:
- First quarter net sales of $689
million were flat compared to last year. Comparable sales
were up 3%. This represents the second consecutive quarter of
positive comparable sales at the brand. Gap's performance was
primarily driven by strong marketing and product execution centered
around its Linen Moves campaign.
Banana Republic:
- First quarter net sales of $440
million were up 2% compared to last year. Comparable sales
were up 1%. The brand's continued focus on fixing the fundamentals
drove sequential improvement in performance compared to the fourth
quarter.
Athleta:
- First quarter net sales of $329
million were up 2% compared to last year. Comparable sales
were up 5%. Sales trends at the brand improved meaningfully versus
the prior quarter as the customer responded well to the new
product, brand expression, and activations. The company expects net
sales in the second quarter to be challenged as the brand laps last
year's quarter of heavy discounting.
Fiscal 2024 Outlook
As a result of its strong first quarter results, the company is
increasing its outlook for fiscal 2024, reflecting higher net sales
and meaningfully higher operating income growth compared to its
prior expectations. This outlook takes into consideration the
continued uncertain consumer and macro environment.
Please note that the company's projected full year fiscal 2024
operating income growth below is provided in comparison to its full
year fiscal 2023 adjusted operating income, which excludes
$93 million in restructuring costs
and a $47 million gain on sale of a
building. Additionally, the company's projected second quarter
fiscal 2024 operating expense growth below is provided in
comparison to its second quarter fiscal 2023 adjusted operating
expense, which excludes $13 million
in restructuring costs.
Full Year Fiscal 2024
|
Current FY 2024
Outlook
|
|
Prior FY 2024
Outlook
|
|
FY 2023
Results
|
Net sales
|
Up slightly on
a
52-week
basis
|
|
Roughly flat on
a
52-week
basis
|
|
$14.9
billion
|
Gross margin
|
At least 150 bps
expansion
|
|
At least 50 bps
expansion
|
|
38.8 %
|
Operating
expense
|
Approximately
$5.1 billion
|
|
Approximately
$5.1 billion
|
|
$5.17 billion
(adjusted)
|
Operating
income
|
Mid 40% growth
range
|
|
Low-to-mid teens
growth
|
|
$606 million
(adjusted)
|
Effective tax
rate
|
Approximately
28%
|
|
Approximately
28%
|
|
9.7 %
|
Capital
expenditures
|
Approximately
$500 million
|
|
Approximately
$500 million
|
|
$420 million
|
Second Quarter Fiscal 2024
|
Q2 2024
Outlook
|
|
Q2 2023
Results
|
Net sales
|
Low-single-digit
growth
|
|
$3.55
billion
|
Gross margin
|
Approximately 300 bps
expansion
|
|
37.6 %
|
Operating
expense
|
Approximately 5%
growth
|
|
$1.214 billion
(adjusted)
|
Webcast and Conference Call Information
Emily Gacka, Director of Investor Relations at
Gap Inc., will host a conference call to review the company's first
quarter fiscal 2024 results beginning at approximately 2:00 p.m. Pacific Time today. Ms. Gacka will be
joined by President and Chief Executive Officer, Richard Dickson and Chief Financial Officer,
Katrina O'Connell.
A live webcast of the conference call and accompanying materials
will be available online at investors.gapinc.com. A replay of the
webcast will be available at the same location.
Non-GAAP Disclosure
This press release and related
conference call include financial measures that have not been
calculated in accordance with U.S. generally accepted accounting
principles (GAAP) and are therefore referred to as non-GAAP
financial measures. The non-GAAP measures described below are
intended to provide investors with additional useful information
about the company's financial performance, to enhance the overall
understanding of its past performance and future prospects, and to
allow for greater transparency with respect to important metrics
used by management for financial and operating decision-making. The
company presents these non-GAAP financial measures to assist
investors in seeing its financial performance from management's
view and because it believes they provide an additional tool for
investors to use in computing the company's core financial
performance over multiple periods with other companies in its
industry. Additional information regarding the intended use of
non-GAAP measures included in this press release and related
conference call is provided in the tables to this press
release.
The non-GAAP measures included in this press release and related
conference call are adjusted gross margin, adjusted operating
expense/adjusted SG&A, adjusted operating income, adjusted
operating margin, adjusted diluted earnings per share, and free
cash flow. These non-GAAP measures exclude the impact of certain
items that are set forth in the tables to this press release. In
addition, the company's outlook includes projected full year fiscal
2024 operating income growth compared to its full year fiscal 2023
adjusted operating income, and projected second quarter fiscal 2024
operating expense growth compared to its second quarter fiscal 2023
adjusted operating expense.
The non-GAAP measures used by the company should not be
considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP and may not
be the same as similarly titled measures used by other companies
due to possible differences in method and in items or events being
adjusted. The company urges investors to review the reconciliation
of non-GAAP financial measures to the most directly comparable GAAP
financial measures included in the tables to this press release
below, and not to rely on any single financial measure to evaluate
its business. The non-GAAP financial measures used by the company
have limitations in their usefulness to investors because they have
no standardized meaning prescribed by GAAP and are not prepared
under any comprehensive set of accounting rules or principles.
Forward-Looking Statements
This press release and related conference call and accompanying
materials contain forward-looking statements within the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than those that are purely historical
are forward-looking statements. Words such as "expect,"
"anticipate," "believe," "estimate," "intend," "plan," "project,"
and similar expressions also identify forward-looking statements.
Forward-looking statements include statements regarding the
following: our strategic priorities, including maintaining and
delivering financial and operational rigor, reinvigorating our
brands, strengthening our platform, and energizing our culture; our
financial footing and positioning; our brand reinvigoration
playbook, including building stronger brand identities and purpose,
delivering trend-right products, amplifying our products through
more compelling storytelling, cultural relevance and marketing,
providing a more engaging omnichannel experience, and executing
with excellence; reasserting Old Navy; improved consistency in Old
Navy performance; Old Navy's potential in the active market; Old
Navy winning market share in key categories; reigniting Gap brand;
the health of Gap's core; expected linen deliveries and leadership
in linen for Gap brand; repeating creative expressions at Gap brand
to drive relevance and revenue; Gap brand's collaboration strategy;
building a stronger foundation at Gap brand to drive consistent
performance; reestablishing Banana Republic; improving the
fundamentals at Banana Republic; setting the stage for improved
future performance at Banana Republic; resetting Athleta; Athleta's
long-term potential; the expected impact of last year's discounting
on Athleta's second quarter 2024 net sales; our new media agency
partner and the expected benefits of the partnership; driving
relevance and revenue; becoming a high-performing house of iconic
brands; expected second quarter 2024 inventory; our second quarter
2024 dividend; expected 2024 net sales; the expected impact of the
loss of the 53rd week on net sales in 2024; the expected impact of
the 53rd week on the quarterly cadence of sales in 2024; expected
impacts related to the trade situation in the Red Sea in 2024;
expected impacts related to consumer and macroeconomic dynamics in
2024; the expected impact of the CFPB's ruling on credit card late
fees and other levers within our credit card program in 2024;
expected 2024 gross margin; expected commodity cost impacts in
2024; disciplined inventory management in 2024; expected ROD in
2024; expected SG&A/operating expense in 2024; expected second
quarter 2024 SG&A/operating expense; identifying cost
efficiencies across the business; expected 2024 operating income;
expected 2024 effective tax rate; expected 2024 capital
expenditures; expected second quarter 2024 net sales; expected
second quarter 2024 gross margin; expected commodity cost impacts
in the second quarter of 2024; expected ROD in the second quarter
of 2024; and generating sustainable, profitable growth, and
delivering long-term value for our shareholders.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our
actual results to differ materially from those in the
forward-looking statements. These factors include, without
limitation, the following risks, any of which could have an adverse
effect on our financial condition, results of operations, and
reputation: the overall global economic and geopolitical
environment and consumer spending patterns; the highly competitive
nature of our business in the United
States and internationally; the risk that we fail to
maintain, enhance and protect our brand image and reputation; the
risk that we or our franchisees may be unsuccessful in gauging
apparel trends and changing consumer preferences or responding with
sufficient lead time; the risk that we may be unable to manage our
inventory effectively and the resulting impact on our gross margins
and sales; the risk of loss or theft of assets, including inventory
shortage; the risk that we fail to manage key executive succession
and retention and to continue to attract qualified personnel;
the risk that trade matters could increase the cost or reduce the
supply of apparel available to us; the risks to our business,
including our costs and global supply chain, associated with global
sourcing and manufacturing; the risks to our reputation or
operations associated with importing merchandise from foreign
countries, including failure of our vendors to adhere to our Code
of Vendor Conduct; the risk that our investments in customer,
digital, and omni-channel shopping initiatives may not deliver the
results we anticipate; the risk that we or our franchisees may be
unsuccessful in identifying, negotiating, and securing new store
locations and renewing, modifying, or terminating leases for
existing store locations effectively; engaging in or seeking to
engage in strategic transactions that are subject to various risks
and uncertainties; the risk that changes in our business strategy
or restructuring our operations may not generate the intended
benefits or projected cost savings; the risk that our efforts to
expand internationally may not be successful; the risk that our
franchisees and licensees could impair the value of our brands;
reductions in income and cash flow from our credit card arrangement
related to our private label and co-branded credit cards; the risk
that our comparable sales and margins may experience fluctuations,
that we may fail to meet financial market expectations, or that the
seasonality of our business may experience fluctuations; the risk
of data or other security breaches or vulnerabilities that may
result in increased costs, violations of law, significant legal and
financial exposure, and a loss of confidence in our security
measures; the risk that failures of, or updates or changes to, our
IT systems may disrupt our operations; the risk of foreign currency
exchange rate fluctuations; the risk that our level of indebtedness
may impact our ability to operate and expand our business; the risk
that we and our subsidiaries may be unable to meet our obligations
under our indebtedness agreements; the risk that changes in our
credit profile or deterioration in market conditions may limit our
access to the capital markets; evolving regulations and
expectations with respect to ESG matters; the adverse effects of
climate change on our operations and those of our franchisees,
vendors, and other business partners; natural disasters, public
health crises (such as pandemics and epidemics), political crises
(such as the ongoing Russia-Ukraine and Israel-Hamas conflicts), negative
global climate patterns, or other catastrophic events; our failure
to comply with applicable laws and regulations and changes in the
regulatory or administrative landscape; the risk that we will not
be successful in defending various proceedings, lawsuits, disputes,
and claims; the risk that our estimates and assumptions used when
preparing our financial information are inaccurate or may change;
the risk that changes in the geographic mix and level of income or
losses, the expected or actual outcome of audits, changes in
deferred tax valuation allowances, and new legislation could impact
our effective tax rate, or that we may be required to pay amounts
in excess of established tax liabilities; the risk that changes in
our business structure, our performance or our industry could
result in reductions in our pre-tax income or utilization of
existing tax carryforwards in future periods, and require
additional deferred tax valuation allowances; the risk that the
adoption of new accounting pronouncements will impact future
results; and the risk that additional information may arise during
our close process or as a result of subsequent events that would
require us to make adjustments to our financial information.
Additional information regarding factors that could cause
results to differ can be found in our Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 19, 2024, as well as our subsequent filings
with the Securities and Exchange Commission.
These forward-looking statements are based on information as of
May 30, 2024. We assume no obligation
to publicly update or revise our forward-looking statements even if
experience or future changes make it clear that any projected
results expressed or implied therein will not be
realized.
About Gap Inc.
Gap Inc., a house of iconic brands, is
the largest specialty apparel company in America. Its Old Navy,
Gap, Banana Republic, and Athleta brands offer clothing,
accessories, and lifestyle products for men, women and children.
Since 1969, Gap Inc. has created products and experiences that
shape culture, while doing right by employees, communities and the
planet. Gap Inc. products are available worldwide through
company-operated stores, franchise stores, and e-commerce sites.
Fiscal year 2023 net sales were $14.9
billion. For more information, please visit
www.gapinc.com.
Investor Relations Contact:
Nina Bari
Investor_relations@gap.com
Media Relations Contact:
Megan Foote
Press@gap.com
The Gap,
Inc.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
UNAUDITED
|
|
|
|
|
|
|
|
|
($ in
millions)
|
May 4,
2024
|
|
April 29,
2023
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,532
|
|
$
1,170
|
Short-term
investments
|
199
|
|
-
|
Merchandise
inventory
|
1,952
|
|
2,299
|
Other current
assets
|
514
|
|
814
|
Total current
assets
|
4,197
|
|
4,283
|
Property and equipment,
net of accumulated depreciation
|
2,528
|
|
2,646
|
Operating lease
assets
|
3,207
|
|
3,123
|
Other long-term
assets
|
976
|
|
880
|
Total assets
|
$
10,908
|
|
$
10,932
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
1,196
|
|
$
1,199
|
Accrued expenses and
other current liabilities
|
942
|
|
1,051
|
Current portion of
operating lease liabilities
|
624
|
|
658
|
Income taxes
payable
|
44
|
|
10
|
Total current
liabilities
|
2,806
|
|
2,918
|
Long-term
liabilities:
|
|
|
|
Revolving credit
facility
|
-
|
|
350
|
Long-term
debt
|
1,489
|
|
1,487
|
Long-term operating
lease liabilities
|
3,387
|
|
3,453
|
Other long-term
liabilities
|
519
|
|
539
|
Total long-term
liabilities
|
5,395
|
|
5,829
|
Total stockholders'
equity
|
2,707
|
|
2,185
|
Total liabilities and
stockholders' equity
|
$
10,908
|
|
$
10,932
|
The Gap,
Inc.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
Ended
|
($ and shares in
millions except per share amounts)
|
May 4,
2024
|
|
April 29,
2023
|
Net sales
|
$
3,388
|
|
$
3,276
|
Cost of goods sold and
occupancy expenses
|
1,991
|
|
2,062
|
Gross profit
|
1,397
|
|
1,214
|
Operating
expenses
|
1,192
|
|
1,224
|
Operating income
(loss)
|
205
|
|
(10)
|
Interest,
net
|
(3)
|
|
10
|
Income (loss) before
income taxes
|
208
|
|
(20)
|
Income tax expense
(benefit)
|
50
|
|
(2)
|
Net income
(loss)
|
$
158
|
|
$
(18)
|
|
|
|
|
|
|
|
Weighted-average number
of shares - basic
|
374
|
|
367
|
Weighted-average number
of shares - diluted
|
383
|
|
367
|
|
|
|
|
|
|
|
Earnings (loss) per
share - basic
|
$
0.42
|
|
$
(0.05)
|
Earnings (loss) per
share - diluted
|
$
0.41
|
|
$
(0.05)
|
The Gap,
Inc.
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks
Ended
|
($ in
millions)
|
May 4,
2024 (a)
|
|
April 29,
2023 (a)
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
158
|
|
$
(18)
|
Depreciation and
amortization
|
124
|
|
137
|
Gain on sale of
building
|
-
|
|
(47)
|
Change in merchandise
inventory
|
38
|
|
83
|
Change in accounts
payable
|
(152)
|
|
(102)
|
Change in accrued
expenses and other current liabilities
|
(158)
|
|
(22)
|
Change in income taxes
payable, net of receivables and other tax-related items
|
13
|
|
(49)
|
Other, net
|
7
|
|
33
|
Net cash provided by
operating activities
|
30
|
|
15
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(93)
|
|
(117)
|
Net proceeds from sale
of building
|
-
|
|
76
|
Purchases of short-term
investments
|
(201)
|
|
-
|
Proceeds from sales and
maturities of short-term investments
|
3
|
|
-
|
Net proceeds from
divestiture activity, net of cash paid
|
-
|
|
11
|
Net cash used for
investing activities
|
(291)
|
|
(30)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from issuances
under share-based compensation plans
|
10
|
|
7
|
Withholding tax
payments related to vesting of stock units
|
(31)
|
|
(10)
|
Cash dividends
paid
|
(56)
|
|
(55)
|
Net cash used for
financing activities
|
(77)
|
|
(58)
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate fluctuations on cash, cash equivalents, and
restricted
cash
|
(2)
|
|
(2)
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(340)
|
|
(75)
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
1,901
|
|
1,273
|
Cash, cash equivalents,
and restricted cash at end of period
|
$
1,561
|
|
$
1,198
|
|
|
|
|
|
|
|
|
|
____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For the thirteen
weeks ended May 4, 2024 and April 29, 2023, total cash, cash
equivalents, and restricted cash
includes $29 million and $28 million, respectively, of restricted
cash recorded within other long-term assets on the
Condensed Consolidated Balance Sheets.
|
The Gap,
Inc.
|
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
FREE CASH
FLOW
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is a
non-GAAP financial measure. We believe free cash flow is an
important metric because it represents a
measure of how much cash a company has available for discretionary
and non-discretionary items after the deduction of
capital expenditures. We require regular capital expenditures
including technology improvements as well as building and
maintaining our stores and distribution centers. We use this metric
internally, as we believe our sustained ability to
generate free cash flow is an important driver of value creation.
However, this non-GAAP financial measure is not
intended to supersede or replace our GAAP results.
|
|
|
|
|
|
|
|
|
|
13 Weeks
Ended
|
($ in
millions)
|
May 4,
2024
|
|
April 29,
2023
|
Net cash provided by
operating activities
|
$
30
|
|
$
15
|
Less: Purchases of
property and equipment
|
(93)
|
|
(117)
|
Free cash
flow
|
$
(63)
|
|
$
(102)
|
The Gap,
Inc.
|
NON-GAAP FINANCIAL
MEASURES
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED STATEMENT
OF OPERATIONS METRICS FOR THE FIRST QUARTER OF FISCAL YEAR
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following adjusted
statement of operations metrics are non-GAAP financial measures.
These measures are provided to enhance visibility into the
Company's
underlying results for the period excluding the impact of
restructuring costs and a gain on sale of building. Management
believes the adjusted metrics are useful for
the assessment of ongoing operations as we believe the adjusted
items are not indicative of our ongoing operations, and provide
additional information to investors
to facilitate the comparison of results against past and future
years. However, these non-GAAP financial measures are not intended
to supersede or replace the
GAAP measures.
|
|
|
Gross
Profit
|
|
Gross
Margin
|
|
Operating
Expenses
|
|
Operating
Expenses as
a % of Net
Sales
|
|
Operating
Income
(Loss)
|
|
Operating
Margin (b)
|
|
Income Tax
Expense
(Benefit)
|
|
Net Income
(Loss)
|
|
Earnings
(Loss) per
Share -
Diluted (b)
|
($ in
millions)
13 Weeks Ended April 29, 2023
|
|
|
|
|
|
|
|
|
|
GAAP metrics, as
reported
|
|
$
1,214
|
|
37.1 %
|
|
$
1,224
|
|
37.4 %
|
|
$
(10)
|
|
(0.3) %
|
|
$
(2)
|
|
$
(18)
|
|
$
(0.05)
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
building
|
|
-
|
|
— %
|
|
47
|
|
1.4 %
|
|
(47)
|
|
(1.4) %
|
|
(11)
|
|
(36)
|
|
(0.10)
|
Restructuring costs
(a)
|
|
4
|
|
0.1 %
|
|
(71)
|
|
(2.2) %
|
|
75
|
|
2.3 %
|
|
18
|
|
57
|
|
0.15
|
Non-GAAP
metrics
|
|
$
1,218
|
|
37.2 %
|
|
$
1,200
|
|
36.6 %
|
|
$
18
|
|
0.5 %
|
|
$
5
|
|
$
3
|
|
$
0.01
|
____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes $62
million of employee-related costs and $13 million of consulting and
other associated costs related to our previously announced actions
to further
simplify and optimize our operating model and structure.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Metrics were
computed individually for each line item; therefore, the sum of the
individual lines may not equal the total.
|
The Gap,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
details the Company's first quarter fiscal year 2024 and 2023 net
sales (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
Old Navy
Global
|
|
Gap
Global
|
|
Banana
Republic
Global
|
|
Athleta
Global
|
|
Other
(2)
|
|
Total
|
13 Weeks Ended May
4, 2024
|
|
|
|
|
|
|
U.S. (1)
|
|
|
$
1,761
|
|
$
513
|
|
$
383
|
|
$
318
|
|
$
14
|
|
$
2,989
|
Canada
|
|
|
146
|
|
66
|
|
36
|
|
10
|
|
-
|
|
258
|
Other
regions
|
|
|
9
|
|
110
|
|
21
|
|
1
|
|
-
|
|
141
|
Total
|
|
|
$
1,916
|
|
$
689
|
|
$
440
|
|
$
329
|
|
$
14
|
|
$
3,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
|
Old Navy
Global
|
|
Gap
Global
|
|
Banana
Republic
Global
|
|
Athleta
Global
|
|
Other
(2)
|
|
Total
|
13 Weeks Ended April
29, 2023
|
|
|
|
|
|
|
U.S. (1)
|
|
|
$
1,659
|
|
$
496
|
|
$
374
|
|
$
309
|
|
$
3
|
|
$
2,841
|
Canada
|
|
|
145
|
|
61
|
|
36
|
|
10
|
|
-
|
|
252
|
Other
regions
|
|
|
24
|
|
135
|
|
22
|
|
2
|
|
-
|
|
183
|
Total
|
|
|
$
1,828
|
|
$
692
|
|
$
432
|
|
$
321
|
|
$
3
|
|
$
3,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) U.S. includes the
United States and Puerto Rico.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Primarily consists
of net sales from revenue-generating strategic
initiatives.
|
The Gap,
Inc.
|
REAL
ESTATE
|
|
|
|
|
|
|
|
|
|
|
Store count, openings,
closings, and square footage for our stores are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
February 3,
2024
|
|
13 Weeks Ended May
4, 2024
|
|
May 4,
2024
|
|
Number of
Store Locations
|
|
Number of
Stores
Opened
|
|
Number of
Stores
Closed
|
|
Number of
Store Locations
|
|
Square
Footage
(in millions)
|
|
|
|
|
|
|
|
|
|
|
Old Navy North
America
|
1,243
|
|
5
|
|
4
|
|
1,244
|
|
19.8
|
Gap North
America
|
472
|
|
-
|
|
6
|
|
466
|
|
4.9
|
Gap Asia
|
134
|
|
-
|
|
2
|
|
132
|
|
1.2
|
Banana Republic North
America
|
400
|
|
-
|
|
3
|
|
397
|
|
3.3
|
Banana Republic
Asia
|
43
|
|
1
|
|
1
|
|
43
|
|
0.2
|
Athleta North
America
|
270
|
|
2
|
|
-
|
|
272
|
|
1.1
|
Company-operated stores
total
|
2,562
|
|
8
|
|
16
|
|
2,554
|
|
30.5
|
Franchise
|
998
|
|
37
|
|
18
|
|
1,017
|
|
N/A
|
Total
|
3,560
|
|
45
|
|
34
|
|
3,571
|
|
30.5
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/gap-inc-reports-first-quarter-fiscal-2024-results-raises-full-year-guidance-302159879.html
SOURCE Gap Inc.