Business Operations - Athleta ended fiscal 2022 with 2,685 company-operated stores and 667 franchise store locations[11] - The company launched a new long-term credit card program with Barclays in fiscal 2022, replacing the previous program with Synchrony Financial[11] - As of January 28, 2023, the company had a workforce of approximately 95,000 employees, with 81% working in retail locations[23] - The company has transitioned its European business to a franchise model and divested its Janie and Jack and Intermix brands in 2021, incurring costs related to these strategic transactions[42] - The company has entered into franchise agreements to operate stores and websites globally, which may impact business performance depending on international demand and franchisee stability[59] Sustainability and Social Responsibility - The company is committed to sustainability and has been certified as a benefit corporation ("B Corp") since 2018[11] - The company has established nine commitments to foster racial equality and has published its second dedicated Equality & Belonging Report in fiscal 2022[25] Economic and Market Conditions - Global economic conditions have adversely affected the company's business, with inflation and rising interest rates leading to recession fears and reduced consumer spending[34] - Inflationary pressures negatively impacted gross margins in fiscal 2022 due to commodity price increases, and if these pressures continue, sales and results of operations will be adversely affected in fiscal 2023[34] - The ongoing conflict between Russia and Ukraine has caused instability and disruption in global markets, impacting supply chain and logistics[57] - Trade restrictions and geopolitical instability, particularly related to U.S.-China relations, could disrupt the supply chain and increase costs[61] Supply Chain and Inventory Management - The company maintains a significant amount of inventory, especially prior to the peak holiday selling season[21] - Supply chain disruptions due to the COVID-19 pandemic have previously impacted inventory levels and sales, and may continue to do so in the future[37] - The company’s reliance on independent vendors for manufacturing exposes it to risks associated with global sourcing and manufacturing, including potential delays and increased costs[48] - Significant changes to inventory management systems and processes are being implemented to optimize inventory levels and enhance supply chain efficiency[45] - The company must successfully gauge apparel trends and changing consumer preferences to avoid excess inventory and adverse effects on sales and margins[38] Financial Performance and Risks - In fiscal 2022, quarterly comparable sales fluctuated from a high of 1% in Q3 to a low of -14% in Q1, indicating significant volatility in sales performance[62] - Over the past five fiscal years, reported gross margins ranged from a high of 39.8% in fiscal 2021 to a low of 34.1% in fiscal 2020, reflecting challenges in maintaining profitability[62] - The company amended its senior secured asset-based revolving credit agreement in July 2022, increasing borrowing capacity to $2.2 billion, which introduces risks related to indebtedness[69] - The company issued $750 million in Senior Notes due 2029 and another $750 million due 2031, which remain outstanding and contribute to its credit profile risks[69] - The company has $1.85 billion in principal amount of undrawn commitments available for additional borrowings under the ABL Facility[72] - High levels of indebtedness may impair the company's ability to obtain additional financing for working capital, capital expenditures, and acquisitions[72] - Compliance with covenants in the ABL Facility may restrict the company's ability to implement its business plan and finance future operations[74] - Any default on scheduled payments could lead to bankruptcy or liquidation, with lenders able to declare all outstanding principal and interest due[74] - The company may face substantial liquidity problems if cash flows are insufficient to fund debt service obligations[72] - Increased interest rates on borrowings under the ABL Facility could further impact the company's financial flexibility[72] - Market conditions and credit profile changes may limit the company's access to capital markets and increase financing costs[74] Competitive Landscape - The company competes with local, national, and global apparel retailers in a highly competitive market[22] - The company faces competitive challenges in the global apparel retail industry, including the need to quickly respond to changing apparel trends and customer demands[40] - The company must maintain its brand image and reputation, which is crucial for its continued success in a rapidly changing media environment[39] - The company is investing in omni-channel shopping initiatives, including cross-channel logistics optimization and digital integration, which involve significant investments in IT systems and operational changes[44] - The company faces intense competition for talent, particularly in design, merchandising, sourcing, and marketing roles, with a high turnover rate in the retail industry[47] Consumer Behavior and Trends - The company focuses on increasing the lifetime value of loyalty members through greater personalization and targeted promotions[11] - The company experienced higher levels of promotional activity and lower-than-planned gross margins in 2022 due to certain products not meeting consumer preferences[45] - The company is developing capabilities to analyze customer behavior and demand to improve store-level allocations and increase sell-through[45] Legal and Compliance Issues - The company is subject to data and security risks, which could adversely affect consumer confidence and result in significant legal and financial exposure[51] - The company faces various legal proceedings that could impact financial performance and management resources[66] Climate and Environmental Risks - Climate change poses risks to operations, potentially leading to increased costs and disruptions due to severe weather events[65]

Store Operations and Workforce - As of fiscal 2021, the company operated 2,835 stores and had 564 franchise locations[28] - The company maintains a workforce of approximately 97,000 employees, with 81% located in the U.S.[41] - The company has closed hundreds of Gap and Banana Republic stores in North America as part of its Power Plan strategy since fiscal 2020[116] Supply Chain and Sourcing - Approximately 33% of merchandise purchases in fiscal 2021 were sourced from Vietnam, and 16% from Indonesia[33] - The company sources merchandise from over 250 vendors, with the two largest vendors accounting for 8% and 7% of total purchases in fiscal 2021[33] - The company is implementing strategic initiatives to optimize inventory levels and enhance supply chain efficiency, including vendor fabric platforming and in-season rapid response to demand[95] - The COVID-19 pandemic has significantly disrupted global supply chains, leading to delays in inventory orders and increased freight costs, particularly impacting net sales in the third and fourth quarters of fiscal 2021[74] - The company incurred higher freight and distribution costs in fiscal 2021 to mitigate supply chain delays, with expectations of continued elevated costs in fiscal 2022[74] - The company is exposed to risks associated with global sourcing, including potential increases in product costs and manufacturing capacity challenges due to vendor issues[96] - Transportation costs and delays, influenced by factors such as public health emergencies and political instability, could adversely affect the company's gross margins[98] - Trade restrictions and tariffs could disrupt the supply chain and increase costs, impacting the company's financial condition and results of operations[108] Financial Performance - Comparable sales fluctuated significantly in fiscal 2021, ranging from a high of 28% in Q1 to a low of -1% in Q3[110] - Reported gross margins over the past five fiscal years ranged from a high of 39.8% in fiscal 2021 to a low of 34.1% in fiscal 2020[110] - Total outstanding indebtedness as of January 29, 2022, was $1.5 billion, consisting entirely of Senior Notes[126] - The company generated net cash from operating activities of $809 million in fiscal 2021, ending the year with $877 million in cash and cash equivalents[128] - The ABL Facility has an initial aggregate principal amount of $1.8675 billion, with $1.5175 billion in undrawn commitments available after a $350 million borrowing[126] - Corporate credit ratings are BB with a positive outlook from Standard & Poor's and Ba2 with a positive outlook from Moody's[134] - Over the past five fiscal years, operating margins ranged from a high of 9.3% in fiscal 2017 to a low of -6.2% in fiscal 2020[110] Strategic Initiatives and Market Position - In fiscal 2021, the company launched a new integrated loyalty program aimed at increasing customer lifetime value through personalization[29] - The company is focusing on developing an omni-channel shopping experience, which includes significant investments in IT systems and data science initiatives[89] - The company has divested its Janie and Jack and Intermix brands in 2021 and transitioned its European business to a franchise model, indicating a strategic shift in operations[88] - The company is committed to sustainability and technology innovation in product development[30] - The company has established nine commitments to foster racial justice and enhance diversity and inclusion[45] Challenges and Risks - Consumer spending patterns are being adversely affected by macroeconomic conditions, including inflation and geopolitical instability, which could impact sales[78] - The company faces challenges in maintaining brand relevance and responding to changing consumer preferences, which are critical for sales performance[82] - The company is competing in a highly competitive global apparel retail industry, facing pressures from various market segments and changing consumer demands[85] - The company faces intense competition for talent, with a high turnover rate in the retail industry, impacting its ability to attract and retain qualified personnel[91] - The company has experienced labor shortages in field and distribution center positions, exacerbated by COVID-19, affecting its operational capabilities[92] - The company is subject to various lawsuits and claims that could adversely affect its financial condition and results of operations[119] - The company is unable to predict the full extent of the COVID-19 pandemic's impact on its business, highlighting ongoing uncertainty in financial projections[77] - The company has implemented remote work policies and may face future operational restrictions due to the pandemic, potentially impacting productivity[76] - The company is subject to data privacy and cybersecurity risks, which could lead to significant legal and financial exposure if breaches occur[102] Health and Safety Measures - The company has implemented on-site COVID-19 vaccination clinics at certain U.S. distribution centers[48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended January 30, 2021 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-7562 THE GAP, INC. (Exact name of registrant as specified in its charter) Delaware 94-1697231 (State of Incorporation) (I.R.S. Employer Ide ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended February 1, 2020 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-7562 THE GAP, INC. (Exact name of registrant as specified in its charter) Delaware 94-1697231 (State of Incorporation) (I.R.S. Employer Ide ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) Common Stock, $0.05 par value The New York Stock Exchange Commission File Number 1-7562 THE GAP, INC. (Exact name of registrant as specified in its charter) Delaware 94-1697231 (State of Incorporation) (I.R.S. Employer Identification No.) Two Folsom Street, San Francisco, California 94105 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (415) 427-0100 Securities ...