Workflow
The Gap, Inc.(GAP) - 2025 Q4 - Annual Results
GAPThe Gap, Inc.(GAP)2025-03-06 21:22

Financial Performance - Fiscal year 2024 net sales increased by 1% to 15.1billion,withcomparablesalesup315.1 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 1.1billion,growingover801.1 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 14.9billioninthepreviousyear[26]−Grossprofitforthefiscalyear2024was14.9 billion in the previous year[26] - Gross profit for the fiscal year 2024 was 6.227 billion, up from 5.775billioninfiscalyear2023[29]−Operatingincomeforthefiscalyear2024was5.775 billion in fiscal year 2023[29] - Operating income for the fiscal year 2024 was 1.112 billion, significantly higher than 560millioninthepreviousyear[29]−Netincomeforthefiscalyear2024was560 million in the previous year[29] - Net income for the fiscal year 2024 was 844 million, compared to 502millioninfiscalyear2023[31]−Freecashflowforfiscalyear2024was502 million in fiscal year 2023[31] - Free cash flow for fiscal year 2024 was 1.039 billion, down from 1.112billioninfiscalyear2023[34]FutureOutlook−Fiscal2025outlookprojectsnetsalesgrowthof11.112 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 447millioninfiscalyear2024[12]−Thecompanyplanstocloseapproximately35storesinfiscalyear2025[12]StoreOperations−Thecompanyoperatedatotalof2,506storesasofFebruary1,2025,downfrom2,562storesayearearlier,reflectinganetclosureof56stores[40]−OldNavyNorthAmericaopened20newstoresbutclosed14,resultinginanetincreaseof6stores[40]−Thetotalsquarefootageofcompany−operatedstoreswas30.1millionasofFebruary1,2025,unchangedfromthepreviousyear[40]−Franchisestorecountincreasedto1,063,with139newopeningsand74closures,resultinginanetincreaseof65stores[40]SalesPerformance−Forthe13weeksendedFebruary1,2025,netsaleswere447 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 4.298billionforthesameperiodlastyear[29]−Totalnetsalesforthe13weeksendedFebruary1,2025,were4.298 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 4,298millionforthe14weeksendedFebruary3,2024,representingadecreaseof3.54,298 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 14,889millionforthefiscalyearendingFebruary3,2024,indicatingadecreaseof1.314,889 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 7,460million,showinganincreaseof3.37,460 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 1,221millionforthepreviousyear,adecreaseof3.21,221 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 11.885billionasofFebruary1,2025,from11.885 billion as of February 1, 2025, from 11.044 billion a year earlier[28] - Total stockholders' equity rose to 3.264billion,upfrom3.264 billion, up from 2.595 billion in the previous year[28] - The company reported a diluted earnings per share of 2.20forfiscalyear2024,comparedto2.20 for fiscal year 2024, compared to 1.34 in fiscal year 2023[29]