Gap Inc. (GAP) reports earnings

The report was filed on November 26, 2024

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Gap Inc. (GPS) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.

The filing includes financial statements for the quarter, showing an increase in net sales to $3,829 million from $3,767 million in the same quarter the previous year. This increase was primarily driven by a rise in online sales.

Gross profit for the quarter was $1,635 million, compared to $1,556 million in the previous year, with gross margin improving to 42.7% from 41.3%.

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Operating income for the quarter was $355 million, up from $250 million in the previous year. The increase was attributed to a decrease in operating expenses as a percentage of net sales.

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Net income for the quarter was $274 million, compared to $218 million in the previous year. Diluted earnings per share were $0.72, up from $0.58.

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The company reported a decrease in merchandise inventory to $2,331 million from $2,377 million in the previous year, reflecting disciplined inventory management.

Cash provided by operating activities was $870 million, while cash used in investing and financing activities was $576 million and $193 million, respectively.

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Gap Inc. had cash and cash equivalents of $1,969 million as of November 2, 2024. The company continues to focus on maintaining financial and operational rigor.

The filing also discusses various strategic priorities, including reinvigorating brands, strengthening the operating platform, and integrating sustainability into business practices.

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Gap Inc. does not anticipate material impacts from the new global minimum corporate tax rules introduced by the OECD.

The company did not repurchase any shares during the quarter, with $476 million remaining under the February 2019 repurchase program.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Gap Inc. quarterly 10-Q report dated November 26, 2024. To report an error, please email earnings@qz.com.