Financial Performance - Net sales for Q2 2025 were $3.7 billion, flat compared to last year, with comparable sales up 1% year-over-year[4] - Diluted earnings per share increased by 6% to $0.57, with net income reported at $216 million[10] - Old Navy's net sales were $2.2 billion, up 1%, with comparable sales increasing by 2%[8] - Gap's net sales reached $772 million, also up 1%, with comparable sales up 4% for the seventh consecutive quarter[9] - Athleta's net sales fell to $300 million, down 11%, with comparable sales down 9%[13] - For the 13 weeks ended August 2, 2025, net sales were $3,725 million, a slight increase from $3,720 million in the same period last year, representing a 0.1% growth[31] - Gross profit for the 26 weeks ended August 2, 2025, was $2,984 million, compared to $2,980 million for the same period in 2024, indicating a stable performance[31] - The company reported a net income of $409 million for the 26 weeks ended August 2, 2025, up from $364 million in the prior year, reflecting a 12.4% increase[32] - Operating income for the 26 weeks ended August 2, 2025, was $552 million, compared to $498 million in the same period last year, representing an increase of 10.8%[31] Cash Flow and Investments - Cash, cash equivalents, and short-term investments rose to $2.4 billion, a 13% increase from the previous year[10] - The company plans to return $144 million to shareholders through dividends and share repurchases in Q2 2025[10] - Free cash flow for the 26 weeks ended August 2, 2025, was $127 million, down from $397 million in the same period last year, showing a decrease of 68.0%[35] - Cash and cash equivalents at the end of the period were $2,222 million, an increase from $1,929 million a year earlier[32] Assets and Equity - Total assets increased to $12,146 million as of August 2, 2025, compared to $11,509 million a year earlier, marking a growth of 5.5%[30] - The total stockholders' equity increased to $3,433 million as of August 2, 2025, up from $2,901 million a year earlier, reflecting an increase of 18.3%[30] Operational Metrics - The company operated 2,486 company-operated stores as of August 2, 2025, a net decrease of 20 stores from the previous period[38] - Gross margin decreased by 140 basis points to 41.2% compared to last year[4] Future Outlook - The fiscal 2025 outlook projects net sales growth of 1% to 2%, with an operating margin of 6.7% to 7.0%[15] - The company’s long-term debt remained stable at $1,491 million as of August 2, 2025, compared to $1,489 million in the previous year[30]
The Gap, Inc.(GAP) - 2026 Q2 - Quarterly Results