New Technology Enables Store Associates to Track and Locate Inventory with a High Level of Accuracy to Drive a Seamless and Intelligent Shopping Experience  SAN FRANCISCO, March 26, 2025 /PRNewswire/ -- RADAR, the technology platform that combines RFID, AI and computer vision technology to track and locate in-store inventory with a high level of accuracy in real-time, today announced a partnership with Old Navy, the largest brand in Gap Inc.'s (NYSE: GAP) house of iconic American brands. Old Navy's multi-ye ...

Store Operations - As of February 1, 2025, Gap Inc. operated 2,506 Company-operated stores and 1,063 franchise store locations[26]. - The company closed a net of 344 Gap and Banana Republic stores in North America from the beginning of fiscal 2020 to the end of fiscal 2023[94]. - The company operates franchise agreements for Old Navy, Gap, Banana Republic, and Athleta in about 40 countries worldwide[36]. Sourcing and Supply Chain - In fiscal 2024, approximately 27% of merchandise purchases by dollar value were sourced from factories in Vietnam, and 19% from Indonesia[31]. - In fiscal 2024, less than 10% of merchandise was purchased from factories in China, and less than 1% from Mexico and Canada combined[79]. - The company is investing in strategic initiatives to optimize inventory levels and improve supply chain efficiency, including vendor fabric platforming and in-season demand response[75]. - Supply chain disruptions, including labor shortages and port congestion, have historically led to delays in inventory receipt, impacting sales[70]. - Transportation costs and delays due to geopolitical instability and public health crises could adversely affect gross margins and sales[84]. Financial Performance - In fiscal 2024, the company reported a gross margin of 41.3% and an operating margin of 7.4%, compared to a low of 34.3% and negative 0.4% in fiscal 2022 respectively[119]. - The company generated net cash from operating activities of $1.5 billion in fiscal 2024, ending the fiscal year with $2.6 billion in cash, cash equivalents, and short-term investments[123]. - As of February 1, 2025, the company had $2.2 billion in undrawn commitments available under its asset-based revolving credit agreement[121]. - The company has $1.5 billion in Senior Notes due in 2029 and 2031, which adds to its level of indebtedness and associated risks[121]. - The company may face challenges in generating sufficient cash flows to service its debt obligations, which could impact its liquidity and operational flexibility[123]. Market Conditions and Competition - The company anticipates that macroeconomic conditions, including inflation and geopolitical instability, may impact customer behavior and sales[32]. - Global economic conditions have adversely affected consumer spending, with factors such as higher unemployment and inflation impacting sales[65]. - The company recognizes the competitive nature of the global apparel retail industry and the need to adapt to changing consumer preferences[38]. - The company faces intense competition in the global apparel retail industry, requiring effective marketing and brand management to maintain customer engagement[67]. - The company is pursuing selective international expansion through franchisees, but faces major established competitors and differing market conditions[99]. Customer Experience and Marketing - Gap Inc. is focused on enhancing its omni-channel shopping experience, integrating digital and physical shopping channels[20]. - The integrated loyalty program aims to increase customer lifetime value through personalized content and targeted promotions[27]. - The company has made significant investments in omni-channel initiatives, including cross-channel logistics optimization and customer personalization[101]. - The company is focusing on accelerating growth in high-potential product categories, including activewear, amidst intense competition[103]. Employee and Talent Management - Gap Inc. employs approximately 82,000 employees, with 84% in retail locations and 82% based in the U.S.[39]. - The company is focused on talent development through structured training programs and initiatives to transition seasonal employees to full-time roles[41]. - Gap Inc. prioritizes health, well-being, and safety for employees, providing various benefits and training on safe work practices[44]. - The company conducts internal pay equity reviews to ensure fair and competitive pay practices[43]. - The loss of key personnel or failure to attract qualified talent could adversely affect business operations and strategic initiatives[88]. Sustainability and Compliance - Gap Inc. is committed to sustainability through technology and product innovation, while delivering quality products[28]. - Compliance with the Code of Vendor Conduct is critical, as noncompliance by vendors could harm the company's reputation and results[87]. - The company faces risks related to compliance with evolving environmental, social, and governance (ESG) regulations, which could increase operational costs and management focus[131]. - Climate change poses a risk to the company's operations, potentially leading to disruptions from severe weather events and changing consumer preferences[134]. Technology and Data Security - The company is undertaking significant upgrades to its technology systems to enhance data analytics and improve operational efficiency[111]. - The company faces risks related to data security and technology, which could adversely affect operations and consumer confidence[106]. - The company is exposed to foreign currency exchange rate fluctuations, which may impact profitability and operating results[116]. Legal and Regulatory Risks - The company is subject to various global regulations, which may result in significant costs but are not expected to materially affect operations[48]. - The company is subject to various legal proceedings that could adversely affect its financial condition and results of operations[140]. - Covenants in the asset-based revolving credit agreement may restrict the company's ability to implement its business plan and respond to changing market conditions[129].

CNBC's Jim Cramer on Thursday highlighted two stocks in the retail space that he thinks investors have an opportunity to buy on the dip — Gap and Ralph Lauren — even as Wall Street worries broadly about tariffs and the strength of the consumer."As long as you don't think the entire economy's about to fall off a cliff, and there's still some of us who feel that way, then some of these high-quality retailers are looking darned cheap at these levels," he said. "Ralph Lauren and the Gap are my faves right now." ...

NYSE CONTENT ADVISORY: PRE-MARKET UPDATE + NYSE ACCEPTS MEDAL OF HONOR SOCIETY AWARD The New York Stock Exchange (NYSE) is proud to offer a daily pre-market update directly from the NYSE Trading Floor. The NYSE became the first... ...

The Gap, Inc. (NYSE:GAP) Q4 2024 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Whitney Notaro - Head of Investor Relations Richard Dickson - President and Chief Executive Officer Katrina O'Connell - Chief Financial Officer Conference Call Participants Alexandra Straton - Morgan Stanley Lorraine Hutchinson - Bank of America Merrill Lynch Matthew Boss - JPMorgan Chase & Co. Brooke Roach - Goldman Sachs Adrienne Yih - Barclays Dana Telsey - Telsey Advisory Group Irwin Boruchow - Wells ...

FOURTH QUARTER AND FISCAL YEAR 2024 RESULTS MARCH 6, 2025 Q4 Fiscal 2024 Forward Looking Statements / Non-GAAP Financial Measures FORWARD LOOKING STATEMENTS These materials and related earnings press release and 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. Forward-looking statements include statements identified as such ...

Financial Performance - Fiscal year 2024 net sales increased by 1% to $15.1 billion, with comparable sales up 3%[7] - Fourth quarter net sales were $4.1 billion, down 3% year-over-year, impacted by calendar shifts[3] - Full year operating income reached $1.1 billion, growing over 80% compared to the previous year[1] - Gross margin for fiscal year 2024 expanded by 250 basis points to 41.3%[7] - Fiscal year 2024 net sales were $15.1 billion, an increase from $14.9 billion in the previous year[26] - Gross profit for the fiscal year 2024 was $6.227 billion, up from $5.775 billion in fiscal year 2023[29] - Operating income for the fiscal year 2024 was $1.112 billion, significantly higher than $560 million in the previous year[29] - Net income for the fiscal year 2024 was $844 million, compared to $502 million in fiscal year 2023[31] - Free cash flow for fiscal year 2024 was $1.039 billion, down from $1.112 billion in fiscal year 2023[34] Future Outlook - Fiscal 2025 outlook projects net sales growth of 1% to 2% and operating income growth of 8% to 10%[12] - The effective tax rate for fiscal year 2025 is expected to be approximately 26%[12] - Capital expenditures for fiscal year 2025 are projected to be around $600 million, up from $447 million in fiscal year 2024[12] - The company plans to close approximately 35 stores in fiscal year 2025[12] Store Operations - The company operated a total of 2,506 stores as of February 1, 2025, down from 2,562 stores a year earlier, reflecting a net closure of 56 stores[40] - Old Navy North America opened 20 new stores but closed 14, resulting in a net increase of 6 stores[40] - The total square footage of company-operated stores was 30.1 million as of February 1, 2025, unchanged from the previous year[40] - Franchise store count increased to 1,063, with 139 new openings and 74 closures, resulting in a net increase of 65 stores[40] Sales Performance - For the 13 weeks ended February 1, 2025, net sales were $4.149 billion, compared to $4.298 billion for the same period last year[29] - Total net sales for the 13 weeks ended February 1, 2025, were $4,149 million, compared to $4,298 million for the 14 weeks ended February 3, 2024, representing a decrease of 3.5%[38] - For the fiscal year ending February 1, 2025, total net sales reached $15,086 million, a decline from $14,889 million for the fiscal year ending February 3, 2024, indicating a decrease of 1.3%[38] - Old Navy's U.S. sales for the 52 weeks ended February 1, 2025, were $7,706 million, while for the 53 weeks ended February 3, 2024, they were $7,460 million, showing an increase of 3.3%[38] - The company reported a total of $1,182 million in sales from Canada for the fiscal year ending February 1, 2025, compared to $1,221 million for the previous year, a decrease of 3.2%[38] Strategic Initiatives - The company plans to continue expanding its market presence through strategic initiatives and new store openings in key regions[40] - The company is focusing on enhancing its product offerings and technology development to drive future growth and improve customer engagement[40] Risks and Challenges - The company faced risks including global economic conditions, competitive pressures, and supply chain challenges that could impact future performance[23] Cash Flow and Assets - The company generated $1.5 billion in operating cash flow for fiscal year 2024[1] - Total assets increased to $11.885 billion as of February 1, 2025, from $11.044 billion a year earlier[28] - Total stockholders' equity rose to $3.264 billion, up from $2.595 billion in the previous year[28] - The company reported a diluted earnings per share of $2.20 for fiscal year 2024, compared to $1.34 in fiscal year 2023[29]

Core Insights - Banana Republic, a brand under Gap Inc., is launching an exclusive capsule collection inspired by HBO's Emmy-winning series, The White Lotus, in collaboration with Warner Bros. Discovery Global Consumer Products [1][2] Collection Overview - The White Lotus collection features 24 pieces of men's and women's apparel and accessories, designed to reflect the show's themes of adventure and travel, with vibrant colors and graphic prints [2][3] - The collection includes premium fabrics such as sustainable European Flax linen, lightweight cotton poplin, and 100% silk, emphasizing Banana Republic's commitment to craftsmanship [3] Marketing and Campaign - The campaign for the collection features Patrick Schwarzenegger and Shanina Shaik, showcasing an elevated lifestyle that aligns with both The White Lotus and Banana Republic [4][5] - The collection will be available starting March 6, 2025, in 26 select stores and online, with prices ranging from $40 to $300 [5] Company Background - Banana Republic, founded in 1978, aims to inspire modern explorers with high-quality collections and experiences [6] - Warner Bros. Discovery Global Consumer Products extends the company's entertainment brands into consumer products, partnering with various licensees for merchandising programs [7]

Core Insights - Athleta is expanding its Power of She Collective by adding WNBA stars Lexie Hull and Kate Martin, emphasizing the brand's commitment to empowering women and girls through sports [1][2][4] Company Overview - Athleta, a Gap Inc. brand, is a leading women's performance activewear company focused on inspiring and empowering women and girls through movement [6] - The brand integrates performance and technical features into its apparel, catering to various activities from yoga to travel [6] Industry Context - The women's sports sector is experiencing significant growth, highlighted by the WNBA's highest viewership and attendance in over 20 years and the launch of the Unrivaled league [1] - Athleta's initiatives align with the broader trend of increasing visibility and support for female athletes [4][5] Community Engagement - Athleta has partnered with Girls Inc. of Greater Miami to provide mentorship and programming aimed at developing strong, confident female leaders [2][7] - The brand hosted local youth at a recent Unrivaled match, allowing them to witness female athletes in action, and made a donation to support after-school programs for girls in low-income communities [2][8] Brand Ambassadors - Hull and Martin will collaborate with other prominent athletes in the Power of She Collective, including Simone Biles and Katie Ledecky, to influence product innovations and participate in impact programs [4][5]

Group 1: Itron, Inc. (ITRI) - Itron is a technology, solutions, and service company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for Itron's current year earnings has increased by 3.1% over the last 60 days [1] - Itron has a PEG ratio of 0.88, significantly lower than the industry average of 2.98, and possesses a Growth Score of B [1] Group 2: The Gap, Inc. (GAP) - The Gap is an apparel retail company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for The Gap's current year earnings has increased by 7.5% over the last 60 days [2] - The Gap has a PEG ratio of 1.06 compared to the industry average of 4.16, and also has a Growth Score of B [2] Group 3: nCino, Inc. (NCNO) - nCino is a software-as-a-service company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for nCino's current year earnings has increased by 7.5% over the last 60 days [2] - nCino has a PEG ratio of 2.07, which is slightly lower than the industry average of 2.22, and possesses a Growth Score of B [3]