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

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]