Financial Performance - Net sales for Q1 fiscal 2025 increased by 1.45 billion, with a gross margin of 41.8%, up from 260 million, compared to 193 million, an increase from 0.51 compared to 1.19 billion, representing 34.3% of net sales, down from 35.2% in Q1 fiscal 2024 [94]. Tax and Cash Flow - The effective income tax rate for Q1 fiscal 2025 was 26.6%, up from 24.0% in Q1 fiscal 2024 [98]. - Net cash used for operating activities was 30 million provided in Q1 fiscal 2024 [102]. - Free cash flow for the 13 weeks ended May 3, 2025, was (63) million for the same period in 2024 [107]. - Net cash used for operating activities was 30 million for the same period in 2024 [107]. - Purchases of property and equipment amounted to (93) million for the same period in 2024 [107]. Company Operations - The company operated a total of 2,496 company-operated stores as of May 3, 2025, a decrease of 10 stores from the previous year [89]. - The company paid a dividend of $0.165 per share in the first quarter of fiscal 2025 and authorized the same amount for the second quarter [108]. Risk and Compliance - There have been no material changes to contractual obligations and commercial commitments since the last annual report [110]. - No significant changes to critical accounting policies and estimates have occurred since the last annual report [111]. - The market risk profile as of February 1, 2025, has not significantly changed [112].
The Gap, Inc.(GAP) - 2026 Q1 - Quarterly Report