Gap Inc. Reports Fourth Quarter and Fiscal 2024 Results; Provides Fiscal 2025 Outlook
Gap Inc. (NYSE: GAP) reported strong financial results for fiscal 2024, with net sales increasing 1% to $15.1 billion and comparable sales up 3%. The company achieved an operating income of $1.1 billion, representing over 80% growth versus the previous year.
Key highlights include:
- Gross margin expanded 250 basis points to 41.3%
- Generated $1.5 billion in operating cash flow
- Online sales grew 4%, representing 38% of total sales
- All four brands gained market share
- Cash position strengthened to $2.6 billion, up 38% year-over-year
Brand performance showed mixed results: Old Navy sales grew 2% to $8.4 billion, Gap brand saw 4% comparable sales growth, Banana Republic remained flat with 1% comparable sales increase, while Athleta experienced a 1% decline in sales. The company announced a 10% increase in quarterly dividend to $0.165 per share and repurchased $75 million in shares during Q4.
Gap Inc. (NYSE: GAP) ha riportato risultati finanziari solidi per l'esercizio 2024, con vendite nette in aumento dell'1% a $15,1 miliardi e vendite comparabili in crescita del 3%. L'azienda ha raggiunto un reddito operativo di $1,1 miliardi, rappresentando oltre l'80% di crescita rispetto all'anno precedente.
I punti salienti includono:
- Espansione del margine lordo di 250 punti base al 41,3%
- Generato $1,5 miliardi di flusso di cassa operativo
- Le vendite online sono cresciute del 4%, rappresentando il 38% delle vendite totali
- Tutti e quattro i marchi hanno guadagnato quote di mercato
- Posizione di cassa rafforzata a $2,6 miliardi, in aumento del 38% rispetto all'anno precedente
Le performance dei marchi hanno mostrato risultati misti: Old Navy ha visto un aumento delle vendite del 2% a $8,4 miliardi, il marchio Gap ha registrato una crescita delle vendite comparabili del 4%, Banana Republic è rimasto stabile con un incremento delle vendite comparabili dell'1%, mentre Athleta ha subito un calo delle vendite dell'1%. L'azienda ha annunciato un aumento del 10% del dividendo trimestrale a $0,165 per azione e ha riacquistato azioni per $75 milioni durante il quarto trimestre.
Gap Inc. (NYSE: GAP) reportó resultados financieros sólidos para el año fiscal 2024, con ventas netas aumentando un 1% a $15.1 mil millones y ventas comparables creciendo un 3%. La compañía logró un ingreso operativo de $1.1 mil millones, lo que representa más del 80% de crecimiento en comparación con el año anterior.
Los puntos destacados incluyen:
- El margen bruto se expandió 250 puntos básicos al 41.3%
- Generó $1.5 mil millones en flujo de efectivo operativo
- Las ventas en línea crecieron un 4%, representando el 38% de las ventas totales
- Las cuatro marcas ganaron cuota de mercado
- La posición de efectivo se fortaleció a $2.6 mil millones, un aumento del 38% interanual
El rendimiento de las marcas mostró resultados mixtos: las ventas de Old Navy crecieron un 2% a $8.4 mil millones, la marca Gap vio un crecimiento del 4% en ventas comparables, Banana Republic se mantuvo plano con un aumento del 1% en ventas comparables, mientras que Athleta experimentó una disminución del 1% en ventas. La compañía anunció un aumento del 10% en el dividendo trimestral a $0.165 por acción y recompró $75 millones en acciones durante el cuarto trimestre.
Gap Inc. (NYSE: GAP)는 2024 회계연도에 강력한 재무 성과를 보고했으며, 순매출은 1% 증가하여 151억 달러에 달하고, 비교 가능한 매출은 3% 증가했습니다. 회사는 11억 달러의 운영 소득을 달성했으며, 이는 전년 대비 80% 이상의 성장률을 나타냅니다.
주요 하이라이트는 다음과 같습니다:
- 총 마진이 250 베이시스 포인트 확대되어 41.3%에 도달
- 15억 달러의 운영 현금 흐름 생성
- 온라인 매출이 4% 증가하여 총 매출의 38%를 차지
- 모든 네 개 브랜드가 시장 점유율 증가
- 현금 보유액이 26억 달러로 강화되어 전년 대비 38% 증가
브랜드 성과는 엇갈린 결과를 보였습니다: Old Navy의 매출은 2% 증가하여 84억 달러에 달했고, Gap 브랜드는 4%의 비교 가능한 매출 성장을 보였으며, Banana Republic는 비교 가능한 매출이 1% 증가하여 변동이 없었고, Athleta는 매출이 1% 감소했습니다. 회사는 분기 배당금을 주당 0.165달러로 10% 인상하고, 4분기 동안 7500만 달러의 자사주를 매입했다고 발표했습니다.
Gap Inc. (NYSE: GAP) a annoncé de solides résultats financiers pour l'exercice 2024, avec des ventes nettes en hausse de 1 % à 15,1 milliards de dollars et des ventes comparables en hausse de 3 %. L'entreprise a réalisé un revenu opérationnel de 1,1 milliard de dollars, représentant plus de 80 % de croissance par rapport à l'année précédente.
Les points clés incluent:
- La marge brute s'est élargie de 250 points de base à 41,3 %
- Généré 1,5 milliard de dollars de flux de trésorerie opérationnel
- Les ventes en ligne ont augmenté de 4 %, représentant 38 % des ventes totales
- Les quatre marques ont gagné des parts de marché
- La position de trésorerie a été renforcée à 2,6 milliards de dollars, en hausse de 38 % par rapport à l'année précédente
La performance des marques a montré des résultats mitigés : les ventes de Old Navy ont augmenté de 2 % pour atteindre 8,4 milliards de dollars, la marque Gap a enregistré une croissance des ventes comparables de 4 %, Banana Republic est resté stable avec une augmentation des ventes comparables de 1 %, tandis que Athleta a connu une baisse des ventes de 1 %. L'entreprise a annoncé une augmentation de 10 % du dividende trimestriel à 0,165 $ par action et a racheté 75 millions de dollars d'actions au cours du quatrième trimestre.
Gap Inc. (NYSE: GAP) berichtete über starke finanzielle Ergebnisse für das Geschäftsjahr 2024, mit einem Anstieg des Nettoumsatzes um 1% auf 15,1 Milliarden Dollar und einem Anstieg der vergleichbaren Umsätze um 3%. Das Unternehmen erzielte ein operatives Ergebnis von 1,1 Milliarden Dollar, was über 80% Wachstum im Vergleich zum Vorjahr bedeutet.
Wichtige Highlights sind:
- Bruttomarge erweiterte sich um 250 Basispunkte auf 41,3%
- Generierte 1,5 Milliarden Dollar an operativem Cashflow
- Online-Umsätze wuchsen um 4% und machten 38% des Gesamtumsatzes aus
- Alle vier Marken gewannen Marktanteile
- Die Liquiditätsposition stärkte sich auf 2,6 Milliarden Dollar, ein Anstieg von 38% im Jahresvergleich
Die Markenleistung zeigte gemischte Ergebnisse: Die Umsätze von Old Navy stiegen um 2% auf 8,4 Milliarden Dollar, die Marke Gap verzeichnete ein Wachstum der vergleichbaren Umsätze um 4%, Banana Republic blieb stabil mit einem Anstieg der vergleichbaren Umsätze um 1%, während Athleta einen Rückgang der Umsätze um 1% erlebte. Das Unternehmen kündigte eine Erhöhung der vierteljährlichen Dividende um 10% auf 0,165 Dollar pro Aktie an und kaufte im vierten Quartal Aktien im Wert von 75 Millionen Dollar zurück.
- Operating income grew over 80% to $1.1 billion
- Gross margin expanded 250 basis points to 41.3%
- Generated $1.5 billion in operating cash flow
- Cash position increased 38% to $2.6 billion
- All four brands gained market share
- 10% dividend increase approved
- Athleta sales declined 1% with flat comparable sales
- Q4 net sales decreased 3% to $4.1 billion
- Store sales decreased 4% in Q4
- Online sales decreased 2% in Q4
Insights
Gap Inc.'s Q4 and fiscal 2024 results showcase a company successfully executing its transformation strategy with exceptional financial discipline. The headline numbers tell a compelling story: full-year operating income surged over 80% to
What's particularly impressive is Gap's gross margin expansion to
Gap has achieved eight consecutive quarters of market share gains across all four brands, a remarkable feat in today's competitive retail landscape. Old Navy, Gap, and Banana Republic all delivered positive comparable sales, with Gap brand's
The company's digital transformation continues to gain traction, with online sales growing
Gap's financial position strengthened considerably, with cash and short-term investments up
Despite acknowledging potential macroeconomic headwinds, Gap's demonstrated ability to control costs while driving brand relevance positions the company well for continued profitable growth in fiscal 2025 and beyond.
2024 net sales increased
All four brands gained market share in the year
Full year operating income of
Generated
"We ended the year delivering another successful quarter, exceeding financial expectations and gaining market share for the 8th consecutive quarter," said President and Chief Executive Officer, Richard Dickson. "For the full year 2024, Gap Inc. delivered positive comps in all four quarters, achieved one of the highest gross margins in the last 20 years and meaningfully increased operating margin versus the prior year. These strong results are underpinned by the momentum we're seeing in our operational execution, our culture and the reinvigoration of our brands as they climb in the cultural conversation. Looking ahead, 2025 represents an exciting step in our ongoing transformation as we continue to drive toward becoming a high performing house of iconic American brands that delivers long-term value for our shareholders."
The company noted that fiscal year 2024 had 52 weeks versus 53 weeks in fiscal year 2023. Due to the 53rd week in fiscal 2023, in order to maintain consistency, comparable sales for the fourth quarter and fiscal year 2024 are compared to the 13 and 52 weeks, respectively, ended February 3, 2024. All other results for the fourth quarter and fiscal year 2024 include the impact from the loss of the additional week.
Fourth Quarter Fiscal 2024 - Financial Results
- Net sales of
were down$4.1 billion 3% compared to last year, inclusive of approximately 7 percentage points of negative impact from the weekly calendar shifts related to the loss of the 53rd week, as well as the loss of the additional week.- Store sales decreased
4% and online sales decreased2% compared to last year, both inclusive of the negative impact related to the loss of the 53rd week. - Online sales represented
41% of total net sales. - Comparable sales were up
3% .
- Store sales decreased
- Gross margin of
38.9% was flat versus last year.- Merchandise margin increased 20 basis points versus last year.
- Rent, occupancy, and depreciation (ROD) as a percent of sales deleveraged 20 basis points versus last year.
- Operating expense was
.$1.4 billion - Operating income was
; operating margin of$259 million 6.2% . - The effective tax rate was
24.3% . - Net income of
; diluted earnings per share of$206 million .$0.54
Full Year Fiscal 2024 - Financial Results
- Net sales of
were up$15.1 billion 1% compared to last year, inclusive of approximately 1 percentage point of negative impact from the loss of the 53rd week. Excluding this impact, net sales grew2% year-over-year.- Store sales were flat year-over-year. The company ended the year with 3,569 store locations in about 40 countries, of which 2,506 were company operated.
- Online sales increased
4% compared to last year and represented38% of total net sales. - Comparable sales were up
3% .
- Gross margin of
41.3% , expanded 250 basis points versus last year.- Merchandise margin increased 210 basis points primarily driven by lower commodity costs.
- Rent, occupancy, and depreciation (ROD) as a percent of sales leveraged 40 basis points primarily due to higher net sales in the year.
- Operating expense was
; down$5.1 billion 2% compared to last year's reported operating expense and down1% compared to last year's adjusted operating expense, which excluded in restructuring costs and a$89 million gain on sale of a building.$47 million - Operating income was
; operating margin of$1.1 billion 7.4% . - The effective tax rate was
25.8% . - Net income was
; diluted earnings per share of$844 million .$2.20
Balance Sheet and Cash Flow Highlights
- Ended the year with cash, cash equivalents and short term investments of
, an increase of$2.6 billion 38% from the prior year. - Fiscal 2024 net cash from operating activities was
. Free cash flow, defined as net cash from operating activities less purchases of property and equipment, was$1.5 billion .$1.0 billion - Ending inventory of
was up$2.1 billion 3.6% compared to last year. - Fiscal year 2024 capital expenditures were
.$447 million - Paid a fourth quarter dividend of
per share, totaling$0.15 .$56 million - Repurchased 3 million shares for approximately
during the fourth quarter and ended fiscal year 2024 with 374 million shares outstanding.$75 million - Distributed
$300 million of cash to shareholders in the form of dividends and share repurchases in fiscal year 2024. - Board of Directors approved a first quarter fiscal year 2025 dividend of
per share, representing a$0.16 510% increase compared to the fourth quarter fiscal year 2024 dividend per share.
Please see the reconciliations of adjusted operating expense and free cash flow, which are non-GAAP financial measures, in the tables at the end of this press release.
Fourth Quarter and Full Year Fiscal 2024 - Global Brand Results
Comparable Sales
Fourth Quarter | Fiscal Year | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Old Navy | 3 % | 2 % | 3 % | (1) % | |||
Gap | 7 % | 4 % | 4 % | 1 % | |||
Banana Republic | 4 % | (4) % | 1 % | (7) % | |||
Athleta | (2) % | (10) % | 0 % | (12) % | |||
Gap Inc. | 3 % | 0 % | 3 % | (2) % |
Old Navy:
- Fourth quarter net sales of
were down$2.2 billion 3% compared to last year. Comparable sales were up3% . The brand continues to win in key categories, like active and denim, with innovation and newness driving strength and market share gains. - Full year net sales of
were up$8.4 billion 2% versus last year. Comparable sales were up3% .
Gap:
- Fourth quarter net sales of
were down$980 million 3% compared to last year. Comparable sales were up7% . Gap is executing the brand reinvigoration playbook with excellence, driving increased relevance and revenue. - Full year net sales of
were flat versus last year. Comparable sales were up$3.3 billion 4% .
Banana Republic:
- Fourth quarter net sales of
were down$545 million 4% compared to last year. Comparable sales were up4% . The brand saw notable improvement in its women's business during the quarter and continues to build on its strength in men's. - Full year net sales of
were flat versus last year. Comparable sales were up$1.9 billion 1% .
Athleta:
- Fourth quarter net sales of
were down$396 million 5% compared to last year. Comparable sales were down2% . Athleta maintained market share in the quarter, but there is still work to do to improve the brand's execution in order to position it to regain momentum. - Full year net sales of
were down$1.4 billion 1% versus last year. Comparable sales were flat.
Fiscal 2025 Outlook
The company's outlook is based on its best assessment of the current macroeconomic environment and related headwinds to consumer spending, including, but not limited to, inflationary pressures, tariffs, supply chain disruptions and foreign currency volatility.
Full Year Fiscal 2025
Full Year Fiscal 2025 Outlook | Full Year Fiscal 2024 Results | ||
Net sales | |||
Operating income | |||
Net interest income | Approximately | ||
Effective tax rate | Approximately | 25.8 % | |
Capital expenditures | Approximately | ||
Net store closures 1 | Approximately 35 | 56 |
First Quarter Fiscal 2025
First Quarter Fiscal 2025 Outlook | First Quarter Fiscal 2024 Results | ||
Net sales | Flat to up slightly | ||
Gross Margin | Expand slightly year-over-year | 41.2 % | |
Operating expense (% of net sales) | Leverage slightly year-over-year | 35.2 % |
1 Refers to company-operated stores.
Webcast and Conference Call Information
Whitney Notaro, Head of Investor Relations at Gap Inc., will host a conference call to review the company's fourth quarter and fiscal year 2024 results beginning at approximately 2:00 p.m. Pacific Time today. Ms. Notaro 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
The non-GAAP measures included in this press release and related conference call are 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.
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 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: driving progress across our strategic priorities, including maintaining and delivering financial and operational rigor, reinvigorating our brands, strengthening our platform, and energizing our culture; our earnings power; becoming a high performing company that generates sustainable, profitable growth and delivers long-term shareholder value; our transformation; performing while we transform; delivering on our commitments as we strengthen our performance; continuous improvement through innovation; paving the way for momentum in the years ahead; momentum in our operational execution, our culture, and the reinvigoration of our brands; driving relevance and revenue by executing on our brand reinvigoration playbook; expanding within the active category; Old Navy's positioning and focus areas for fiscal 2025; Old Navy's growth potential; building on Gap brand's momentum in fiscal 2025; Gap brand's growth potential; Banana Republic's positioning for fiscal 2025 and beyond; Athleta's focus areas for fiscal 2025; Athleta's expected near-term quarterly performance; our ambitions for Athleta; improving Athleta's execution to position the brand to regain momentum; leveraging our supply chain to navigate the macroeconomic environment; unlocking value creation opportunities; developing artificial intelligence monetization opportunities; reallocating efficiencies and cost savings for future growth and to offset inflation; cutting low-value projects to fuel high-value opportunities; growth opportunities in design, consumer insights, and store operations; seeding new avenues for future growth; controlling the controllables; winning share in any environment; our inventory composition going into fiscal 2025 and our expected fiscal 2025 inventory; our capital allocation priorities, including to drive strong returns and enhance shareholder value; expected fiscal 2025 capital expenditures; our dividend and share repurchase policies; strengthening our performance in fiscal 2025; our expectations for the macroeconomic environment in fiscal 2025; expected full year and first quarter fiscal 2025 net sales; the expected impact of foreign currency exchange rates in fiscal 2025; our brands' expected performance in fiscal 2025; the expected impact in fiscal 2025 of lapping incremental credit card revenue in fiscal 2024; sustaining gross margin improvement through continued rigor and executional excellence; expected full year and first quarter fiscal 2025 gross margin; expected ROD and merchandise margin in fiscal 2025; expected cost savings and efficiencies in fiscal 2025; expected full year and first quarter fiscal 2025 operating expense/SG&A; expected fiscal 2025 operating income; expected fiscal 2025 net interest income; expected fiscal 2025 effective tax rate; and expected net store closures in fiscal 2025.
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 business, financial condition, and results of operations: the overall global economic and geopolitical environment, uncertainties related to government fiscal, monetary, and tax policies, and consumer spending patterns; the highly competitive nature of our business in
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 March 6, 2025. 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 2024 net sales were
Investor Relations Contact:
Nina
Investor_relations@gap.com
Media Relations Contact:
Megan Foote
Press@gap.com
The Gap, Inc. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
UNAUDITED | |||||||
($ in millions) | February 1, 2025 | February 3, 2024 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ 2,335 | $ 1,873 | |||||
Short-term investments | 253 | — | |||||
Merchandise inventory | 2,067 | 1,995 | |||||
Other current assets | 548 | 527 | |||||
Total current assets | 5,203 | 4,395 | |||||
Property and equipment, net of accumulated depreciation | 2,496 | 2,566 | |||||
Operating lease assets | 3,240 | 3,115 | |||||
Other long-term assets | 946 | 968 | |||||
Total assets | $ 11,885 | $ 11,044 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ 1,488 | $ 1,349 | |||||
Accrued expenses and other current liabilities | 1,083 | 1,108 | |||||
Current portion of operating lease liabilities | 632 | 600 | |||||
Income taxes payable | 53 | 39 | |||||
Total current liabilities | 3,256 | 3,096 | |||||
Long-term liabilities: | |||||||
Long-term debt | 1,490 | 1,488 | |||||
Long-term operating lease liabilities | 3,353 | 3,353 | |||||
Other long-term liabilities | 522 | 512 | |||||
Total long-term liabilities | 5,365 | 5,353 | |||||
Total stockholders' equity | 3,264 | 2,595 | |||||
Total liabilities and stockholders' equity | $ 11,885 | $ 11,044 |
The Gap, Inc. | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
UNAUDITED | ||||||||||
13 Weeks Ended | 14 Weeks Ended (1) | 52 Weeks Ended | 53 Weeks Ended (1) | |||||||
($ and shares in millions except per share amounts) | February 1, 2025 | February 3, 2024 | February 1, 2025 | February 3, 2024 | ||||||
Net sales | $ 4,149 | $ 4,298 | $ 15,086 | $ 14,889 | ||||||
Cost of goods sold and occupancy expenses | 2,537 | 2,626 | 8,859 | 9,114 | ||||||
Gross profit | 1,612 | 1,672 | 6,227 | 5,775 | ||||||
Operating expenses | 1,353 | 1,458 | 5,115 | 5,215 | ||||||
Operating income | 259 | 214 | 1,112 | 560 | ||||||
Interest, net | (13) | (4) | (25) | 4 | ||||||
Income before income taxes | 272 | 218 | 1,137 | 556 | ||||||
Income tax expense | 66 | 33 | 293 | 54 | ||||||
Net income | $ 206 | $ 185 | $ 844 | $ 502 | ||||||
Weighted-average number of shares - basic | 377 | 372 | 376 | 370 | ||||||
Weighted-average number of shares - diluted | 384 | 381 | 384 | 376 | ||||||
Earnings per share - basic | $ 0.55 | $ 0.50 | $ 2.24 | $ 1.36 | ||||||
Earnings per share - diluted | $ 0.54 | $ 0.49 | $ 2.20 | $ 1.34 | ||||||
____________________ | ||||||||||
(1) Fiscal 2023 includes the impact of an additional week. |
The Gap, Inc. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
UNAUDITED | ||||||||
52 Weeks Ended | 53 Weeks Ended | |||||||
($ in millions) | February 1, 2025 (a) | February 3, 2024 (a) | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ 844 | $ 502 | ||||||
Depreciation and amortization | 500 | 522 | ||||||
Gain on sale of building | — | (47) | ||||||
Change in merchandise inventory | (88) | 383 | ||||||
Change in accounts payable | 137 | 42 | ||||||
Other, net | 93 | 130 | ||||||
Net cash provided by operating activities | 1,486 | 1,532 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (447) | (420) | ||||||
Net proceeds from sale of property | 7 | 76 | ||||||
Purchases of short-term investments | (409) | — | ||||||
Proceeds from sales and maturities of short-term investments | 162 | — | ||||||
Proceeds from divestiture activity, net of cash paid | — | 9 | ||||||
Other | (5) | 1 | ||||||
Net cash used for investing activities | (692) | (334) | ||||||
Cash flows from financing activities: | ||||||||
Repayments of revolving credit facility | — | (350) | ||||||
Proceeds from issuances under share-based compensation plans | 32 | 27 | ||||||
Withholding tax payments related to vesting of stock units | (50) | (20) | ||||||
Repurchases of common stock | (75) | — | ||||||
Cash dividends paid | (225) | (222) | ||||||
Other | (3) | (2) | ||||||
Net cash used for financing activities | (321) | (567) | ||||||
Effect of foreign exchange rate fluctuations on cash, cash equivalents, and restricted cash | (9) | (3) | ||||||
Net increase in cash, cash equivalents, and restricted cash | 464 | 628 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 1,901 | 1,273 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ 2,365 | $ 1,901 | ||||||
____________________ | ||||||||
(a) For the fifty-two weeks ended February 1, 2025 and the fifty-three weeks ended February 3, 2024, total cash, cash equivalents, and restricted cash includes |
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 | |||||
52 Weeks Ended | 53 Weeks Ended | ||||
($ in millions) | February 1, 2025 | February 3, 2024 | |||
Net cash provided by operating activities | $ 1,486 | $ 1,532 | |||
Less: Purchases of property and equipment | (447) | (420) | |||
Free cash flow | $ 1,039 | $ 1,112 |
The Gap, Inc. | ||||||||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||
UNAUDITED | ||||||||||||||||||
ADJUSTED STATEMENT OF OPERATIONS METRICS FOR 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. | ||||||||||||||||||
($ in millions) | Gross Profit | Gross Margin | Operating | Operating | Operating | Operating | Income Tax | Net Income | Earnings per | |||||||||
GAAP metrics, as reported | $ 5,775 | 38.8 % | $ 5,215 | 35.0 % | $ 560 | 3.8 % | $ 54 | $ 502 | $ 1.34 | |||||||||
Adjustments for: | ||||||||||||||||||
Restructuring costs (a) | 4 | — % | (89) | (0.6) % | 93 | 0.6 % | 23 | 70 | 0.19 | |||||||||
Gain on sale of building | — | — % | 47 | 0.3 % | (47) | (0.3) % | (11) | (36) | (0.10) | |||||||||
Non-GAAP metrics | $ 5,779 | 38.8 % | $ 5,173 | 34.7 % | $ 606 | 4.1 % | $ 66 | $ 536 | $ 1.43 | |||||||||
____________________ | ||||||||||||||||||
(a) Includes |
The Gap, Inc. | |||||||||||||
NET SALES RESULTS | |||||||||||||
UNAUDITED | |||||||||||||
The following table details the Company's fourth quarters and fiscal years 2024 and 2023 net sales (unaudited): | |||||||||||||
($ in millions) | Old Navy Global | Gap Global | Banana | Athleta Global | Other (3) | Total | |||||||
13 Weeks Ended February 1, 2025 | |||||||||||||
U.S. (2) | $ 2,043 | $ 756 | $ 479 | $ 385 | $ 16 | $ 3,679 | |||||||
154 | 88 | 46 | 10 | - | 298 | ||||||||
Other regions | 15 | 136 | 20 | 1 | - | 172 | |||||||
Total | $ 2,212 | $ 980 | $ 545 | $ 396 | $ 16 | $ 4,149 | |||||||
($ in millions) | Old Navy Global | Gap Global | Banana | Athleta Global | Other (3) | Total | |||||||
14 Weeks Ended February 3, 2024 (1) | |||||||||||||
U.S. (2) | $ 2,107 | $ 768 | $ 494 | $ 407 | $ 17 | $ 3,793 | |||||||
171 | 99 | 48 | 12 | - | 330 | ||||||||
Other regions | 10 | 140 | 25 | - | - | 175 | |||||||
Total | $ 2,288 | $ 1,007 | $ 567 | $ 419 | $ 17 | $ 4,298 | |||||||
($ in millions) | Old Navy Global | Gap Global | Banana | Athleta Global | Other (3) | Total | |||||||
52 Weeks Ended February 1, 2025 | |||||||||||||
U.S. (2) | $ 7,706 | $ 2,531 | $ 1,682 | $ 1,311 | $ 65 | $ 13,295 | |||||||
649 | 326 | 168 | 39 | - | 1,182 | ||||||||
Other regions | 46 | 477 | 83 | 3 | - | 609 | |||||||
Total | $ 8,401 | $ 3,334 | $ 1,933 | $ 1,353 | $ 65 | $ 15,086 | |||||||
($ in millions) | Old Navy Global | Gap Global | Banana | Athleta Global | Other (3) | Total | |||||||
53 Weeks Ended February 3, 2024 (1) | |||||||||||||
U.S. (2) | $ 7,460 | $ 2,470 | $ 1,681 | $ 1,310 | $ 46 | $ 12,967 | |||||||
674 | 332 | 170 | 45 | - | 1,221 | ||||||||
Other regions | 69 | 539 | 88 | 5 | - | 701 | |||||||
Total | $ 8,203 | $ 3,341 | $ 1,939 | $ 1,360 | $ 46 | $ 14,889 | |||||||
____________________ | |||||||||||||
(1) Fiscal 2023 includes incremental sales attributable to the 53rd week. | |||||||||||||
(2) | |||||||||||||
(3) 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 | 52 Weeks Ended February 1, 2025 | February 1, 2025 | |||||||
Number of | Number of Stores | Number of Stores | Number of | Square Footage | |||||
Old Navy North America | 1,243 | 20 | 14 | 1,249 | 19.8 | ||||
Gap North America | 472 | 5 | 24 | 453 | 4.8 | ||||
Gap | 134 | 1 | 13 | 122 | 1.1 | ||||
Banana Republic North America | 400 | 4 | 24 | 380 | 3.2 | ||||
Banana Republic Asia | 43 | 6 | 7 | 42 | 0.1 | ||||
Athleta North America | 270 | 2 | 12 | 260 | 1.1 | ||||
Company-operated stores total | 2,562 | 38 | 94 | 2,506 | 30.1 | ||||
Franchise | 998 | 139 | 74 | 1,063 | N/A | ||||
Total | 3,560 | 177 | 168 | 3,569 | 30.1 |
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SOURCE Gap Inc.