Gap Inc ( (GAP) ) has released its Q4 earnings. Here is a breakdown of the information Gap Inc presented to its investors.
Gap Inc., the largest specialty apparel company in the U.S., offers a diverse range of clothing and lifestyle products through its brands Old Navy, Gap, Banana Republic, and Athleta. The company recently released its financial results for the fourth quarter and fiscal year 2024, highlighting a year of growth and strategic advancements.
Gap Inc. reported a 1% increase in net sales for fiscal 2024, with comparable sales rising by 3%. The company achieved an impressive 80% growth in operating income, reaching $1.1 billion, and generated $1.5 billion in operating cash flow. Notably, all four of its brands gained market share during the year.
Key financial metrics for the fourth quarter included net sales of $4.1 billion, a 3% decrease compared to the previous year, primarily due to calendar shifts. Despite this, comparable sales rose by 3%, and the gross margin remained stable at 38.9%. For the full year, net sales reached $15.1 billion, with a gross margin expansion of 250 basis points to 41.3%. Operating expenses decreased by 2%, contributing to a net income of $844 million.
Looking ahead, Gap Inc. anticipates continued growth in fiscal 2025, projecting net sales growth of 1% to 2% and operating income growth of 8% to 10%. The company plans to invest approximately $600 million in capital expenditures and expects to close around 35 stores. Gap Inc. remains focused on enhancing its brand relevance and operational execution to deliver long-term value for shareholders.