Investment Rating - The industry rating is "Buy" [6] Core Views - The report highlights the advantages of the company's operations in Indonesia, particularly in the 2B bag manufacturing business, which is expected to see high double-digit growth in 2024. The net profit margin is anticipated to have recovery potential due to improved capacity utilization and reduced foreign exchange impacts. The company is also expected to benefit from inventory replenishment and expansion of both existing and new customer bases [2][21] - The 2C business is driven by changes in the profit-sharing model with Xiaomi, which is expected to enhance profitability. The acquisition of Shanghai Jiale opens up a larger market in garment manufacturing, providing a second growth curve for the company [2][21] - Revenue forecasts for 2024, 2025, and 2026 are projected at 4.298 billion, 6.069 billion, and 6.970 billion yuan respectively, with net profits of 414 million, 461 million, and 565 million yuan, corresponding to EPS of 1.73, 1.92, and 2.36 yuan [2][21] Summary by Sections Industry Performance - The textile and apparel sector saw a 4.24% increase, outperforming the Shanghai Composite Index by 2.85%. The apparel and home textile segments rose by 4.63% and 11.38% respectively, while the textile manufacturing segment declined by 0.49% [26] - The top-performing stocks included Xunlong Health, which surged by 61.01%, while Nanshan Zhishang fell by 7.97% [26][32] Material Data - As of March 14, the China Cotton 3128B Index was 14,904 yuan/ton, with a year-to-date increase of 1.32%. The medium import cotton price index was 13,416 yuan/ton, showing a 0.71% increase [40] - The USDA forecasts a 7.24% year-on-year increase in global cotton production for the 2024/2025 season, with total production expected to reach 26.336 million tons [52] Consumer Data - In February 2025, sales growth for various categories on Douyin showed significant increases, with sports apparel growing by 68.8% year-on-year. On Taobao and Tmall, children's clothing and sportswear also saw positive growth [10][11] - The retail sales of major retail enterprises in China decreased by 4.3% year-on-year in 2024, indicating challenges in the consumer market [11]

Core Insights - Gap reported revenue of $4.15 billion for the quarter ended January 2025, a decrease of 3.5% year-over-year, while EPS increased to $0.54 from $0.49 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.07 billion by 2.02%, and the EPS surpassed the consensus estimate of $0.36 by 50% [1] Financial Performance Metrics - Comparable store sales for Gap increased by 7%, significantly higher than the average estimate of 0.5% from five analysts [4] - Comparable store sales for Old Navy rose by 3%, compared to an estimated decline of 1.1% [4] - Comparable store sales for Banana Republic increased by 4%, exceeding the average estimate of a 1.8% decline [4] Store Locations and Sales - The total number of company-operated stores was 2,506, slightly below the average estimate of 2,535 [4] - Gap's global net sales totaled $980 million, surpassing the average estimate of $952.50 million, but reflecting a year-over-year decline of 2.7% [4] - Banana Republic's global net sales were $545 million, exceeding the estimate of $520.94 million, with a year-over-year decline of 3.9% [4] - Old Navy's global net sales reached $2.21 billion, slightly above the estimate of $2.17 billion, also showing a year-over-year decline of 3.3% [4] Stock Performance - Gap's shares have returned -11.9% over the past month, compared to a -3.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

2024 net sales increased 1% versus last year with comparable sales up 3% Exhibit 99.1 Fourth Quarter Fiscal 2024 - Financial Results All four brands gained market share in the year Full year operating income of $1.1 billion grew over 80% versus last year Generated $1.5 billion in operating cash flow for the year SAN FRANCISCO – March 6, 2025 – Gap Inc. (NYSE: GAP), the largest specialty apparel company in the U.S., with a portfolio of brands including Old Navy, Gap, Banana Republic, and Athleta, today repor ...

Financial Performance - Net sales for Q3 fiscal 2024 increased by $62 million, or 2%, compared to Q3 fiscal 2023, primarily driven by a 7% increase in online sales [88][102]. - Gross profit for Q3 fiscal 2024 was $1.64 billion, with a gross margin of 42.7%, up from $1.56 billion and 41.3% in Q3 fiscal 2023 [89][102]. - Operating income for Q3 fiscal 2024 rose to $355 million, compared to $250 million in Q3 fiscal 2023, reflecting improved operational efficiency [89]. - Net income for Q3 fiscal 2024 was $274 million, an increase from $218 million in Q3 fiscal 2023, resulting in diluted earnings per share of $0.72, up from $0.58 [89][102]. - Comparable sales for the Gap, Inc. increased by 1% in Q3 fiscal 2024, with Old Navy showing a 3% increase and Athleta a 5% increase [98]. Inventory and Expenses - Merchandise inventory decreased by 2% as of Q3 fiscal 2024 compared to Q3 fiscal 2023, indicating effective inventory management [89]. - Operating expenses for Q3 fiscal 2024 were $1.28 billion, representing 33.4% of net sales, a decrease from 34.7% in Q3 fiscal 2023 [103]. Tax and Cash Flow - The effective income tax rate for Q3 fiscal 2024 was 24.1%, significantly higher than 12.8% in Q3 fiscal 2023, primarily due to changes in valuation allowances [106]. - Net cash provided by operating activities increased by $38 million during the first three quarters of fiscal 2024 compared to the same period in fiscal 2023 [114]. - Free cash flow for the first three quarters of fiscal 2024 was $540 million, slightly down from $544 million in the same period of fiscal 2023 [120]. - The effective tax rate for the first three quarters of fiscal 2024 increased compared to the prior year, influenced by tax benefits recognized in the previous year and changes in income tax reserves [108]. - The company has not experienced material impacts from the OECD's new global minimum corporate tax of 15% on its effective tax rate for fiscal 2024 [108]. Store Operations and Strategy - The total number of company-operated stores decreased to 2,544, with 29 openings and 47 closures during the period [100]. - The company plans to focus on maintaining financial rigor, enhancing omni-channel experiences, and integrating sustainability into business practices [90]. Dividends and Financing - The company paid a dividend of $0.15 per share during the third quarter of fiscal 2024 and authorized the same amount for the fourth quarter [121]. - Net cash used for financing activities decreased by $323 million during the first three quarters of fiscal 2024, mainly due to repayments of revolving credit facility borrowings in the prior year [116]. - The company believes its existing cash balances and cash flows from operations provide sufficient funds for business operations and capital expenditures over the next 12 months [113]. Cash and Investments - As of November 2, 2024, the company had cash and cash equivalents of $1.97 billion and short-term investments of $250 million [110]. - Net cash used for investing activities increased by $373 million during the first three quarters of fiscal 2024, primarily due to $246 million of net purchases of short-term investments [115]. Supplier Programs - The company’s voluntary SCF program allows suppliers to sell their receivables, but it does not impact the company's payment terms [112].

Exhibit 99.1 GAP INC. Gap Inc. Reports Third Quarter Fiscal 2024 Results, Raises Full Year Outlook Net sales increased 2% versus last year with comparable sales up 1% Operating margin of 9.3% improved 270 basis points versus last year Market share gains across all brands in the quarter Raises outlook for fiscal 2024 net sales, gross margin and operating income growth SAN FRANCISCO – November 21, 2024 – Gap Inc. (NYSE: GAP), the largest specialty apparel company in the U.S. and a house of iconic brands inclu ...

For the quarterly period ended August 3, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-7562 THE GAP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...

[Second Quarter Fiscal 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202024%20%E2%80%93%20Financial%20Results) Gap Inc. reported strong second-quarter results, exceeding expectations with a **5% increase** in net sales to **$3.7 billion** and a **3% rise** in comparable sales. The company achieved significant margin expansion, with operating margin improving by **490 basis points** to **7.9%**. This performance was driven by market share gains for the **sixth consecutive quarter**, strength in online sales, and improved merchandise margins - The company gained market share for the **6th consecutive quarter**, reflecting the successful execution of its brand reinvigoration strategy[1](index=1&type=chunk)[2](index=2&type=chunk) Q2 Fiscal 2024 Key Financial Metrics | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $3.7 billion | $3.55 billion | +5% YoY | | Comparable Sales | +3% | -6% | N/A | | Gross Margin | 42.6% | 37.6% | +500 bps YoY | | Operating Margin | 7.9% | 3.0% | +490 bps YoY | | Net Income | $206 million | $117 million | +76% YoY | | Diluted EPS | $0.54 | $0.32 | +$0.22 YoY | - Sales growth was supported by a **4% increase** in store sales and a **7% increase** in online sales, which now represent **33%** of total net sales[3](index=3&type=chunk) - Gross margin improvement was primarily driven by a **410 basis point increase** in merchandise margin, benefiting from lower commodity costs and improved promotional activity[3](index=3&type=chunk) [Global Brand Performance](index=2&type=section&id=Second%20Quarter%20Fiscal%202024%20%E2%80%93%20Global%20Brand%20Results) Brand performance was led by strong results at Old Navy and Gap, which both saw positive comparable sales growth for the fourth and third consecutive quarters, respectively. Old Navy's net sales grew **8%**, and Gap's grew **1%**. Banana Republic's sales were flat, showing stabilization, while Athleta's sales declined slightly, though it is expected to return to growth in the second half of the year Comparable Sales Growth by Brand (Q2 2024 vs. Q2 2023) | Brand | Q2 2024 Comp Sales | Q2 2023 Comp Sales | | :--- | :--- | :--- | | Old Navy | 5% | (6)% | | Gap | 3% | (1)% | | Banana Republic | 0% | (8)% | | Athleta | (4)% | (7)% | | **Gap Inc. Total** | **3%** | **(6)%** | - **Old Navy:** Net sales reached **$2.1 billion**, up **8% YoY**, with comparable sales up **5%**. This marks the **fourth consecutive quarter** of positive comparable sales[7](index=7&type=chunk) - **Gap:** Net sales were **$766 million**, up **1% YoY**, with comparable sales up **3%**. This is the **third consecutive quarter** of positive comparable sales, with market share gains for **five straight quarters**[7](index=7&type=chunk) - **Banana Republic:** Net sales of **$479 million** were flat YoY, as were comparable sales, as the brand focuses on improving pricing and assortment[8](index=8&type=chunk) - **Athleta:** Net sales of **$338 million** were down **1% YoY**, with comparable sales down **4%**. The company expects Athleta to return to positive comparable sales growth for the rest of the year[9](index=9&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Highlights) The company significantly strengthened its financial position, ending the quarter with **$2.1 billion** in cash and equivalents, a **59% increase** from the prior year. Free cash flow was robust at **$397 million**, and inventory levels were reduced by **5%** to **$2.11 billion**, reflecting disciplined management. The company also maintained its dividend, paying **$0.15 per share** Key Balance Sheet and Cash Flow Metrics (as of August 3, 2024) | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | Cash, Cash Equivalents & Short-term Investments | $2.1 billion | +59% | | Ending Inventory | $2.11 billion | -5% | | Net Cash from Operating Activities (26 Weeks) | $579 million | +10% | | Free Cash Flow (26 Weeks) | $397 million | +21% | - The company paid a second-quarter dividend of **$0.15 per share**, totaling **$56 million**, and the Board approved a third-quarter dividend of the same amount[5](index=5&type=chunk) [Fiscal 2024 Outlook](index=3&type=section&id=Fiscal%202024%20Outlook) Following strong Q2 performance, Gap Inc. raised its full-year guidance for gross margin and operating income growth. The company now expects gross margin to expand by approximately **200 basis points** and operating income to grow in the **mid to high 50% range**. The outlook for net sales remains 'up slightly' on a 52-week basis [Full Year Fiscal 2024 Outlook](index=3&type=section&id=Full%20Year%20Fiscal%202024) Full Year Fiscal 2024 Guidance Update | Metric | Current FY 2024 Outlook | Prior FY 2024 Outlook | FY 2023 Results | | :--- | :--- | :--- | :--- | | Net Sales | Up slightly (52-week basis) | Up slightly (52-week basis) | $14.9 billion | | Gross Margin | Approx. 200 bps expansion | At least 150 bps expansion | 38.8% | | Operating Income | Mid to High 50% growth | Mid 40% growth | $606 million (adj.) | | Operating Expense | Approx. $5.1 billion | Approx. $5.1 billion | $5.17 billion (adj.) | | Capital Expenditures | Approx. $500 million | Approx. $500 million | $420 million | [Third Quarter (Q3) 2024 Outlook](index=3&type=section&id=Q3%202024%20Outlook) Q3 2024 Guidance | Metric | Q3 2024 Outlook | Q3 2023 Results | | :--- | :--- | :--- | | Net Sales | Up slightly | $3.77 billion | | Gross Margin | 50 to 75 bps expansion | 41.3% | | Operating Expense | Approx. $1.3 billion | $1.3 billion | [Supplementary Information](index=8&type=section&id=Supplementary%20Information) This section provides the detailed unaudited financial statements, including the Condensed Consolidated Balance Sheets, Statements of Operations, and Statements of Cash Flows. It also includes reconciliations for non-GAAP measures, a detailed breakdown of net sales by brand and region, and an overview of the company's real estate portfolio [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) - The report includes unaudited condensed consolidated financial statements for the period ended August 3, 2024[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Financial Statement Summary (as of August 3, 2024) | Metric | Amount | | :--- | :--- | | Total Assets | $11.51 billion | | Total Liabilities | $8.61 billion | | Total Stockholders' Equity | $2.90 billion | | Net Income (26 Weeks) | $364 million | [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) - The company uses non-GAAP measures such as free cash flow and adjusted operating income to provide additional insight into its core financial performance, excluding items like restructuring costs[14](index=14&type=chunk)[15](index=15&type=chunk) Free Cash Flow Reconciliation (26 Weeks Ended) | ($ in millions) | August 3, 2024 | July 29, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $579 | $528 | | Less: Purchases of property and equipment | ($182) | ($199) | | **Free cash flow** | **$397** | **$329** | [Net Sales and Real Estate Details](index=13&type=section&id=Net%20Sales%20and%20Real%20Estate) - In Q2 2024, the U.S. region accounted for **$3.29 billion** of the total **$3.72 billion** in net sales[31](index=31&type=chunk) - As of August 3, 2024, the company operated a total of **3,568 stores**, including **2,541 company-operated** and **1,027 franchise locations**. The total number of company-operated stores decreased by a net of **21** in the first half of the year[34](index=34&type=chunk) [Disclosures](index=4&type=section&id=Disclosures) This section contains important legal information, including the 'safe harbor' statement regarding forward-looking statements. It outlines numerous risks and uncertainties that could cause actual results to differ from projections, such as the global economic environment, competitive pressures, and supply chain disruptions - The report contains forward-looking statements concerning strategic priorities, brand reinvigoration, financial outlook, and other projections[17](index=17&type=chunk)[18](index=18&type=chunk) - Key risk factors cited include the global economic and geopolitical environment, the highly competitive nature of the apparel business, failure to manage inventory effectively, and risks associated with global sourcing and manufacturing[18](index=18&type=chunk)[19](index=19&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-7562 THE GAP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizati ...

The Gap, Inc. (NYSE:GPS) Q1 2024 Earnings Conference Call May 30, 2024 5:00 PM ET Company Participants Emily Gacka - Director, IR Richard Dickson - CEO Katrina O'Connell - CFO Conference Call Participants Matthew Boss - JPMorgan Robert Drbul - Guggenheim Paul Lejuez - Citigroup Alex Straton - Morgan Stanley Michael Binetti - Evercore Lorraine Hutchinson - Bank of America Ike Boruchow - Wells Fargo Brooke Roach - Goldman Sachs Adrienne Yih - Barclays Jonna Kim - TD Cowen Operator Good afternoon, ladies and g ...

Financial Performance - Net sales for the first quarter of fiscal 2024 were $3.4 billion, an increase of 3% year-over-year, with comparable sales also up 3%[3] - Gross margin improved to 41.2%, reflecting a 410 basis point increase from the previous year[3] - Operating income for the quarter was $205 million, resulting in an operating margin of 6.1%[3] - Old Navy's net sales reached $1.9 billion, up 5% year-over-year, with comparable sales increasing by 3%[7] - Gap's net sales were $689 million, flat compared to last year, but comparable sales rose by 3%[8] - Athleta's net sales were $329 million, up 2% year-over-year, with comparable sales increasing by 5%[12] - Net income for the quarter was $158 million, compared to a net loss of $18 million in the same period last year[31] - Earnings per share (EPS) for the quarter were $0.42 (basic) and $0.41 (diluted), compared to a loss of $0.05 per share in the previous year[31] Guidance and Projections - The company raised its full-year fiscal 2024 guidance for net sales and operating income growth due to strong first-quarter results[13] - Projected full-year fiscal 2024 operating income growth is expected to be in the mid-40% range compared to the previous year's adjusted operating income of $606 million[15] Cash and Investments - Ending cash and short-term investments increased by 48% year-over-year to $1.7 billion[10] - Cash, cash equivalents, and restricted cash at the end of the period totaled $1.561 billion, down from $1.901 billion at the beginning of the period[32] - The company reported a net cash provided by operating activities of $30 million for the quarter, compared to $15 million in the prior year[32] - Free cash flow for the 13 weeks ended May 4, 2024, was $(63) million, an improvement from $(102) million in the same period last year[35] - Net cash provided by operating activities increased to $30 million for the 13 weeks ended May 4, 2024, compared to $15 million for the same period in 2023[35] Store Operations - The company operated a total of 2,554 company-operated stores as of May 4, 2024, down from 2,562 stores at the end of the previous quarter[41] - Old Navy North America opened 5 new stores and closed 4 stores during the 13 weeks ended May 4, 2024, resulting in a net increase of 1 store[41] - Total square footage of company-operated stores remained at 30.5 million as of May 4, 2024[41] Historical Performance - Fiscal year 2023 net sales reached $14.9 billion, marking a significant presence in the specialty apparel market[28] - For the 13 weeks ended May 4, 2024, net sales increased to $3.388 billion from $3.276 billion in the same period last year, representing a growth of 3.4%[31] - Gross profit for the same period was $1.397 billion, up from $1.214 billion, indicating a gross margin improvement[31] - Operating income for the 13 weeks ended May 4, 2024, was $205 million, a turnaround from an operating loss of $10 million in the prior year[31] Restructuring and Costs - The company incurred $4 million in restructuring costs during the first quarter of fiscal year 2023, impacting operating expenses[37] - Adjusted operating income for the first quarter of fiscal year 2023 was $18 million, reflecting a 0.5% operating margin[37] - The company is focused on expanding its market presence and enhancing product offerings to drive future growth[28]