Gap delivers ‘strong’ Q4 and FY24, remains optimistic for 2025

Gap's nett income for FY24 reached $15.1bn, reflecting a 1% summation from the erstwhile year. This fig includes a astir 1 percent constituent antagonistic interaction owing to the lack of a 53^rd week successful the fiscal calendar. Adjusting for this factor, nett income showed a 2% emergence connected an yearly basis.

Comparable income implicit the twelvemonth besides saw a 3% uptick, portion ecommerce gross climbed by 4%, constituting 38% of the company's full nett sales.

Gap president and main enforcement serviceman Richard Dickson said: “We ended the twelvemonth delivering different palmy quarter, exceeding fiscal expectations and gaining marketplace stock for the eighth consecutive quarter.

“For the afloat twelvemonth 2024, Gap delivered affirmative comps successful each 4 quarters, achieved 1 of the highest gross margins successful the past 20 years and meaningfully accrued operating borderline versus the anterior year. These beardown results are underpinned by the momentum we’re seeing successful our operational execution, our civilization and the reinvigoration of our brands arsenic they ascent successful the taste conversation.”

Gap’s nett income stood astatine $844m successful FY24, translating to diluted net per stock (EPS) of $2.20 for the fiscal year.

The company’s operating income reached $1.1bn, resulting successful an operating borderline of 7.4%.

Gross borderline of Gap expanded by 250 ground points implicit the erstwhile year, arriving astatine 41.3% for fiscal 2024. Its merchandise margins improved by 210 ground points, mostly fuelled by reduced commodity costs.

The company’s rent, occupancy, and depreciation (ROD) expenses leveraged by 40 ground points arsenic a percent of sales, chiefly owed to an summation successful nett income for the year.

Operating expenses were reported astatine $5.1bn, marking a alteration of 2% from the anterior year's reported figures and a simplification of 1% from adjusted operating expenses that excluded restructuring costs and gains from plus sales.

Gap’s nett income dipped by 3% to $4.1bn erstwhile compared with the aforesaid play successful the erstwhile year. This includes an approximate antagonistic interaction of 7 percent points owed to calendar shifts and the nonaccomplishment of an further week.

Sales from the company’s store portfolio fell by 4%, and online income saw a alteration of 2% against past year's figures with some declines said to bespeak the interaction of the missing 53^rd week.

Despite this, online transactions accounted for 41% of full nett income and comparable income accrued by 3%.

Net income for the 4th was recorded astatine $206m, equating to diluted EPS of $0.54.

The quarter's operating income was $259m with an operating borderline of 6.2%. Its gross borderline remained unchanged from past twelvemonth astatine 38.9%, portion merchandise borderline experienced a flimsy summation of 20 ground points implicit the erstwhile year.