Financial Performance - Net sales for Q3 2025 reached $3.9 billion, a 3% increase compared to the previous year, with comparable sales up 5% year-over-year[3] - Operating income for Q3 was $334 million, resulting in an operating margin of 8.5%[10] - Old Navy's Q3 net sales were $2.3 billion, up 5%, with comparable sales increasing by 6%[8] - Gap's Q3 net sales reached $951 million, a 6% increase, with comparable sales up 7% for the eighth consecutive quarter[9] - Athleta's Q3 net sales decreased by 11% to $257 million, with comparable sales also down 11%[12] - Net sales for the 13 weeks ended November 1, 2025, were $3,942 million, a 2.9% increase from $3,829 million for the same period in 2024[32] - Gross profit for the 39 weeks ended November 1, 2025, was $4,654 million, compared to $4,615 million for the same period in 2024, reflecting a slight increase[32] - Net income for the 39 weeks ended November 1, 2025, was $645 million, up from $638 million in 2024, indicating a growth of 1.1%[33] - Operating income for the 39 weeks ended November 1, 2025, was $886 million, compared to $853 million in 2024, showing an increase of 3.9%[32] Cash Flow and Assets - Year-to-date free cash flow was reported at $280 million, with net cash from operating activities at $607 million[10] - Free cash flow for the 39 weeks ended November 1, 2025, was $280 million, down from $540 million in 2024, representing a decrease of 48.5%[36] - Cash, cash equivalents, and restricted cash at the end of the period were $2,290 million, an increase from $1,998 million at the end of the previous year[33] - Total assets increased to $12,370 million as of November 1, 2025, compared to $11,853 million as of November 2, 2024, marking a growth of 4.4%[31] Store Operations - The company ended the quarter with nearly 3,500 store locations across approximately 35 countries, with 2,497 being company-operated[3] - The company operated 2,497 company-operated stores as of November 1, 2025, a net decrease of 9 stores from the previous period[39] Sales Outlook - Full year fiscal 2025 net sales growth outlook has been raised to a range of 1.7% to 2.0%, up from the previous guidance of 1.0% to 2.0%[14] Margins - Gross margin was reported at 42.4%, exceeding expectations, although it decreased by 30 basis points from last year[3] Online Sales - Online sales accounted for 40% of total net sales, increasing by 2% compared to last year[3] Earnings Per Share - The company reported a weighted-average diluted earnings per share of $0.62 for the 13 weeks ended November 1, 2025, compared to $0.72 for the same period in 2024[32] Stockholders' Equity - Total stockholders' equity rose to $3,647 million as of November 1, 2025, up from $3,135 million in 2024, reflecting a significant increase of 16.3%[31]
The Gap, Inc.(GAP) - 2026 Q3 - Quarterly Results