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SAN FRANCISCO--(BUSINESS WIRE)--Nov 17, 2022--
Gap Inc. (NYSE: GPS), a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S., today reported financial results for its third quarter ended October 29, 2022.
“I have deep conviction that we have a portfolio of iconic brands that our customers love, increased confidence in our platform to drive leverage and economies of scale, and belief in the team’s ability to deliver. We have sharpened our focus on execution to optimize profitability and cash flow, are bringing more rigor to our operations, and balancing our assortments in response to what our customers are telling us. While our efforts show early signs of improvement, we are clear that there is work to be done to deliver what our customers, employees and shareholders expect from Gap Inc.” said Bob Martin, Executive Chairman and Interim CEO, Gap Inc.
Third Quarter Fiscal 2022 - Financial Results
Third Quarter Fiscal 2022 – Balance Sheet and Cash Flow Highlights
Additional information regarding adjusted gross margin, adjusted operating income, adjusted operating margin, adjusted net income, adjusted income taxes, adjusted diluted earnings per share, and free cash flow, all of which are non-GAAP financial measures, is provided at the end of this press release along with a reconciliation of these measures from the most directly comparable GAAP financial measures for the applicable period.
Third Quarter Fiscal 2022 – Global Brand Results
Old Navy:
Gap:
Banana Republic:
Athleta:
Fiscal Year 2022 Outlook
“While our third quarter results underscore the initial progress we are making toward rebalancing our assortments and reducing inventories, we continue to take a prudent approach in light of the uncertain consumer and increasingly promotional environment as we look to the remainder of fiscal 2022,” said Katrina O’Connell, Executive Vice President and Chief Financial Officer, Gap Inc. “In the near-term, we remain focused on the actions necessary to reduce inventory, rebalance our assortments to better meet changing consumer needs, aggressively manage and reevaluate our investments, and fortify our balance sheet. While we have work to do, we believe we are taking the right steps in order to position Gap Inc. for sustainable, profitable growth and to deliver value for our shareholders over the long term.”
The company is providing the following commentary related to its outlook.
Sales:
Gross Margin and Inventory:
SG&A:
Tax:
Capital Expenditures:
Other:
Webcast and Conference Call Information
Cammeron McLaughlin, Head of Investor Relations at Gap Inc., will host a conference call to review the company’s third quarter fiscal 2022 results beginning at approximately 2:00 p.m. Pacific Time today. Ms. McLaughlin will be joined by Interim Chief Executive Officer Bob Martin and Chief Financial Officer Katrina O’Connell.
A live webcast of the conference call will be available online at investors.gapinc.com. A replay of the webcast will be available at the same location.
Non-GAAP Disclosure
This press release includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to provide investors with additional useful information about the company’s financial performance, to enhance the overall understanding of its past performance and future prospects and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management's view and because it believes they provide an additional tool for investors to use in computing the company's core financial performance over multiple periods with other companies in its industry. Additional information regarding the intended use of each non-GAAP measure included in this press release is provided in the tables to this press release.
The non-GAAP measures included in this press release are adjusted gross margin, adjusted operating income, adjusted operating margin, adjusted net income, adjusted income taxes, adjusted diluted earnings per share, and free cash flow. These non-GAAP measures exclude the impact of certain items that are set forth in the tables to this press release.
The non-GAAP measures used by the company should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted. The company urges investors to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures included in the tables to this press release below, and not to rely on any single financial measure to evaluate its business. The non-GAAP financial measures used by the company have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles.
Forward-Looking Statements
This press release and related conference call and webcast contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the following: estimated annualized savings resulting from cost management actions, the timing thereof, and the impact thereof on SG&A in the fourth quarter of 2022 and 2023; seasonal labor cost headwinds in the fourth quarter of 2022; incentive compensation and wage pressure headwinds in 2023; severance offsets in the fourth quarter of 2022; taking action to enter fiscal 2023 in an improved inventory position; total inventories by the end of fiscal 2022; variability in discount rate; the promotional environment; taking advantage of reinstated responsive capabilities; chasing into demand and aligning inventory with demand trends; integrating pack and hold inventory into future assortments; Old Navy’s market positioning; Gap and Banana Republic store closures in 2022 and 2023; Athleta and Old Navy store openings in 2022; total company sales in the fourth quarter of 2022; gross margin in the fourth quarter of 2022; air freight expense in the fourth quarter of 2022; inflationary and commodity costs in the fourth quarter of 2022; ROD in the fourth quarter of 2022; the impact of the year-to-date income tax benefit in 2022 and tax expense in the fourth quarter of 2022; normalized cash flow in the second half of 2022; capital expenditures in 2022; expectations for share repurchases in the remainder of 2022; and the impacts of freight and commodity tailwinds on our business and the timing thereof in 2023.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following risks, any of which could have an adverse effect on our financial condition, results of operations, and reputation: the overall global economic and geopolitical environment, consumer spending patterns and risks associated with the COVID-19 pandemic; the risk that we may be unable to manage our inventory effectively and the resulting impact on our gross margins and sales; the risk that inflation continues to rise, which could increase our expenses and negatively impact consumer demand; the risk that our estimates regarding consumer demand are inaccurate, or that global economic conditions worsen beyond what we currently estimate; the risk that we fail to manage key executive succession and retention and to continue to attract qualified personnel; the risk that we may be unable to mitigate the impact of global supply chain disruptions on our business and operations and maintain inventory commensurate with consumer demand; the risk that global supply chain delays will result in receiving inventory after the applicable selling season and lead to significant impairment charges; the risk that we or our franchisees may be unsuccessful in gauging apparel trends and changing consumer preferences or responding with sufficient lead time; the risk that we fail to maintain, enhance and protect our brand image and reputation; the risk that increased public focus on our ESG initiatives or our inability to meet our stated ESG goals could affect our brand image and reputation; the highly competitive nature of our business in the United States and internationally; engaging in or seeking to engage in strategic transactions that are subject to various risks and uncertainties; the risk that our investments in customer, digital, and omni-channel shopping initiatives may not deliver the results we anticipate; the risks to our business, including our costs and global supply chain, associated with global sourcing and manufacturing; the risks to our reputation or operations associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct; the risk of data or other security breaches or vulnerabilities that may result in increased costs, violations of law, significant legal and financial exposure, and a loss of confidence in our security measures; the risk that failures of, or updates or changes to, our IT systems may disrupt our operations; the risk that our efforts to expand internationally may not be successful; the risk that our franchisees and licensees could impair the value of our brands; the risk that trade matters could increase the cost or reduce the supply of apparel available to us; the risk of foreign currency exchange rate fluctuations; the risk that our comparable sales and margins may experience fluctuations or that we may fail to meet financial market expectations; natural disasters, public health crises (similar to and including the ongoing COVID-19 pandemic), political crises (such as the ongoing conflict between Russia and Ukraine), negative global climate patterns, or other catastrophic events; the risk that we or our franchisees may be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying, or terminating leases for existing store locations effectively; the risk that we will not be successful in defending various proceedings, lawsuits, disputes, and claims; our failure to comply with applicable laws and regulations and changes in the regulatory or administrative landscape; reductions in income and cash flow from our credit card arrangement related to our private label and co-branded credit cards; the risk that our level of indebtedness may impact our ability to operate and expand our business; the risk that we and our subsidiaries may be unable to meet our obligations under our indebtedness agreements; the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets; the risk that the adoption of new accounting pronouncements will impact future results; the risk that we do not repurchase some or all of the shares we anticipate purchasing pursuant to our repurchase program; and the risk that additional information may arise during our close process or as a result of subsequent events that would require us to make adjustments to our financial information.
Additional information regarding factors that could cause results to differ can be found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2022, as well as our subsequent filings with the Securities and Exchange Commission.
These forward-looking statements are based on information as of November 17, 2022. We assume no obligation to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
About Gap Inc.
Gap Inc., a collection of purpose-led lifestyle brands, is the largest American specialty apparel company offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. The company uses omni-channel capabilities to bridge the digital world and physical stores to further enhance its shopping experience. Gap Inc. is guided by its purpose, Inclusive, by Design, and takes pride in creating products and experiences its customers love while doing right by its employees, communities, and planet. Gap Inc. products are available for purchase worldwide through company-operated stores, franchise stores, and e-commerce sites. Fiscal year 2021 net sales were $16.7 billion. For more information, please visit www.gapinc.com.
| The Gap, Inc. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| UNAUDITED | ||||||
| ($ in millions) | October 29, 2022 | October 30, 2021 | ||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 679 | $ | 801 | ||
| Short-term investments |
| - |
| 275 | ||
| Merchandise inventory |
| 3,043 |
| 2,721 | ||
| Other current assets |
| 1,316 |
| 1,410 | ||
| Total current assets |
| 5,038 |
| 5,207 | ||
| Property and equipment, net |
| 2,788 |
| 2,924 | ||
| Operating lease assets |
| 3,341 |
| 3,788 | ||
| Other long-term assets |
| 833 |
| 861 | ||
| Total assets | $ | 12,000 | $ | 12,780 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1,388 | $ | 1,630 | ||
| Accrued expenses and other current liabilities |
| 1,245 |
| 1,414 | ||
| Current portion of operating lease liabilities |
| 691 |
| 746 | ||
| Income taxes payable |
| 57 |
| 33 | ||
| Total current liabilities |
| 3,381 |
| 3,823 | ||
| Long-term liabilities: | ||||||
| Revolving credit facility |
| 350 |
| - | ||
| Long-term debt |
| 1,486 |
| 1,484 | ||
| Long-term operating lease liabilities |
| 3,673 |
| 4,163 | ||
| Other long-term liabilities |
| 539 |
| 523 | ||
| Total long-term liabilities |
| 6,048 |
| 6,170 | ||
| Total stockholders' equity |
| 2,571 |
| 2,787 | ||
| Total liabilities and stockholders' equity | $ | 12,000 | $ | 12,780 |
| The Gap, Inc. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| UNAUDITED | ||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
| ($ and shares in millions except per share amounts) | October 29, 2022 | October 30, 2021 | October 29, 2022 | October 30, 2021 | ||||||||||||
| Net sales | $ | 4,039 |
| $ | 3,943 |
| $ | 11,373 |
| $ | 12,145 |
| ||||
| Cost of goods sold and occupancy expenses |
| 2,530 |
|
| 2,282 |
|
| 7,438 |
|
| 7,031 |
| ||||
| Gross profit |
| 1,509 |
|
| 1,661 |
|
| 3,935 |
|
| 5,114 |
| ||||
| Operating expenses |
| 1,323 |
|
| 1,508 |
|
| 3,974 |
|
| 4,312 |
| ||||
| Operating income (loss) |
| 186 |
|
| 153 |
|
| (39 | ) |
| 802 |
| ||||
| Loss on extinguishment of debt |
| - |
|
| 325 |
|
| - |
|
| 325 |
| ||||
| Interest expense |
| 22 |
|
| 44 |
|
| 63 |
|
| 149 |
| ||||
| Interest income |
| (4 | ) |
| (1 | ) |
| (6 | ) |
| (3 | ) | ||||
| Income (loss) before income taxes |
| 168 |
|
| (215 | ) |
| (96 | ) |
| 331 |
| ||||
| Income taxes |
| (114 | ) |
| (63 | ) |
| (167 | ) |
| 59 |
| ||||
| Net income (loss) | $ | 282 |
| $ | (152 | ) | $ | 71 |
| $ | 272 |
| ||||
| Weighted-average number of shares - basic |
| 365 |
|
| 376 |
|
| 367 |
|
| 377 |
| ||||
| Weighted-average number of shares - diluted |
| 366 |
|
| 376 |
|
| 370 |
|
| 385 |
| ||||
| Earnings (loss) per share - basic | $ | 0.77 |
| $ | (0.40 | ) | $ | 0.19 |
| $ | 0.72 |
| ||||
| Earnings (loss) per share - diluted | $ | 0.77 |
| $ | (0.40 | ) | $ | 0.19 |
| $ | 0.71 |
|
| The Gap, Inc. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| UNAUDITED | ||||||||
| 39 Weeks Ended | ||||||||
| ($ in millions) | October 29, 2022 (a) | October 30, 2021 (a) | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 71 |
| $ | 272 |
| ||
| Depreciation and amortization |
| 402 |
|
| 372 |
| ||
| Loss on extinguishment of debt |
| - |
|
| 325 |
| ||
| Loss on divestiture activity |
| 35 |
|
| 59 |
| ||
| Gain on sale of building |
| (83 | ) |
| - |
| ||
| Change in merchandise inventory |
| (78 | ) |
| (288 | ) | ||
| Change in accounts payable |
| (503 | ) |
| (119 | ) | ||
| Change in accrued expenses and other current liabilities |
| (123 | ) |
| 239 |
| ||
| Change in income taxes payable, net of receivables and other tax-related items |
| 216 |
|
| (94 | ) | ||
| Other, net |
| (49 | ) |
| (84 | ) | ||
| Net cash provided by (used for) operating activities |
| (112 | ) |
| 682 |
| ||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment |
| (577 | ) |
| (486 | ) | ||
| Net proceeds from sale of buildings |
| 458 |
|
| - |
| ||
| Purchases of short-term investments |
| - |
|
| (634 | ) | ||
| Proceeds from sales and maturities of short-term investments |
| - |
|
| 768 |
| ||
| Payments for acquisition activity, net of cash acquired |
| - |
|
| (135 | ) | ||
| Net cash paid for divestiture activity |
| - |
|
| (21 | ) | ||
| Net cash used for investing activities |
| (119 | ) |
| (508 | ) | ||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving credit facility |
| 350 |
|
| - |
| ||
| Proceeds from issuance of long-term debt |
| - |
|
| 1,500 |
| ||
| Payments to extinguish debt |
| - |
|
| (2,546 | ) | ||
| Payments for debt issuance costs |
| (6 | ) |
| (16 | ) | ||
| Proceeds from issuances under share-based compensation plans |
| 23 |
|
| 48 |
| ||
| Withholding tax payments related to vesting of stock units |
| (17 | ) |
| (34 | ) | ||
| Repurchases of common stock |
| (123 | ) |
| (128 | ) | ||
| Cash dividends paid |
| (166 | ) |
| (182 | ) | ||
| Other |
| (1 | ) |
| - |
| ||
| Net cash provided by (used for) financing activities |
| 60 |
|
| (1,358 | ) | ||
| Effect of foreign exchange rate fluctuations on cash, cash equivalents, and restricted cash |
| (25 | ) |
| (3 | ) | ||
| Net decrease in cash, cash equivalents, and restricted cash |
| (196 | ) |
| (1,187 | ) | ||
| Cash, cash equivalents, and restricted cash at beginning of period |
| 902 |
|
| 2,016 |
| ||
| Cash, cash equivalents, and restricted cash at end of period | $ | 706 |
| $ | 829 |
|
| (a) For the thirty-nine weeks ended October 29, 2022 and October 30, 2021, total cash, cash equivalents, and restricted cash includes $27 million and $28 million, respectively, of restricted cash recorded primarily in other long-term assets on the Condensed Consolidated Balance Sheets. |
The Gap, Inc.
NON-GAAP FINANCIAL MEASURES
UNAUDITED
FREE CASH FLOW
Free cash flow is a non-GAAP financial measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available for discretionary and non-discretionary items after the deduction of capital expenditures. We require regular capital expenditures including technology improvements to automate processes, engage with customers, and optimize our supply chain in addition to building and maintaining stores. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.
| 39 Weeks Ended | ||||
| ($ in millions) | October 29, 2022 | October 30, 2021 | ||
| Net cash provided by (used for) operating activities | $ (112) | $ 682 | ||
| Less: Purchases of property and equipment | (577) | (486) | ||
| Free cash flow | $ (689) | $ 196 |
The Gap, Inc.
NON-GAAP FINANCIAL MEASURES
UNAUDITED
ADJUSTED STATEMENT OF OPERATIONS METRICS FOR THE THIRD QUARTER OF FISCAL YEAR 2022
The following adjusted statement of operations metrics are non-GAAP financial measures. These measures are provided to enhance visibility into the Company's underlying results for the period excluding the impact of impairment related to the Yeezy Gap business and a gain on sale of building. Management believes that excluding certain items from statement of operations metrics that are not part of the Company's core operations provides additional information to investors to facilitate the comparison of results against past and future years. However, these non-GAAP financial measures are not intended to supersede or replace the GAAP measures.
| ($ in millions) | |||||||||||||||||||||||||||||||
| 13 Weeks Ended October 29, 2022 | Gross | Gross | Operating Expenses | Operating Expenses as a % of Net Sales (c) | Operating Income | Operating Margin (c) | Income Taxes | Net Income | Earnings per Share - Diluted | ||||||||||||||||||||||
| GAAP metrics, as reported | $ | 1,509 | 37.4 | % | $ | 1,323 | 32.8 | % | $ | 186 |
| 4.6 | % | $ | (114 | ) | $ | 282 |
| $ | 0.77 |
| |||||||||
| Adjustments for: | |||||||||||||||||||||||||||||||
| Yeezy Gap impairment charges (a) |
| 53 | 1.3 | % |
| - | - | % |
| 53 |
| 1.3 | % |
| 9 |
|
| 44 |
|
| 0.12 |
| |||||||||
| Gain on sale of building (b) |
| - | - | % |
| 83 | 2.1 | % |
| (83 | ) | (2.1 | )% |
| (17 | ) |
| (66 | ) |
| (0.18 | ) | |||||||||
| Non-GAAP metrics | $ | 1,562 | 38.7 | % | $ | 1,406 | 34.8 | % | $ | 156 |
| 3.9 | % | $ | (122 | ) | $ | 260 |
| $ | 0.71 |
|
| (a) Represents the impairment charges as a result of the decision to discontinue the Yeezy Gap business, primarily related to inventory. |
| (b) Represents the impact of a gain on sale of our distribution center located in the United Kingdom. |
| (c) Metrics were computed individually for each line item; therefore, the sum of the individual lines may not equal the total. |
The Gap, Inc.
NON-GAAP FINANCIAL MEASURES
UNAUDITED
ADJUSTED STATEMENT OF OPERATIONS METRICS FOR THE THIRD QUARTER OF FISCAL YEAR 2021
The following adjusted statement of operations metrics are non-GAAP financial measures. These measures are provided to enhance visibility into the Company's underlying results for the period excluding the impacts of strategic changes related to our operating model in Europe and the loss on extinguishment of debt. Management believes that excluding certain items from statement of operations metrics that are not part of the Company's core operations provides additional information to investors to facilitate the comparison of results against past and future years. However, these non-GAAP financial measures are not intended to supersede or replace the GAAP measures.
| ($ in millions) | ||||||||||||||||||||||||||||||||||||
| 13 Weeks Ended October 30, 2021 | Gross Profit | Gross Margin | Operating Expenses | Operating Expenses as a % of Net Sales (b) | Operating Income | Operating Margin | Loss on Extinguishment of Debt | Income Taxes | Net Income (Loss) | Earnings (Loss) per Share - Diluted (b) | ||||||||||||||||||||||||||
| GAAP metrics, as reported | $ | 1,661 |
| 42.1 | % | $ | 1,508 |
| 38.2 | % | $ | 153 | 3.9 | % | $ | 325 |
| $ | (63 | ) | $ | (152 | ) | $ | (0.40 | ) | ||||||||||
| Adjustments for: | ||||||||||||||||||||||||||||||||||||
| Strategic actions in Europe (a) |
| (9 | ) | (0.2 | )% |
| (26 | ) | (0.7 | )% |
| 17 | 0.4 | % |
| - |
|
| 5 |
|
| 12 |
|
| 0.03 |
| ||||||||||
| Loss on extinguishment of debt |
| - |
| - | % |
| - |
| - | % |
| - | - | % |
| (325 | ) |
| 83 |
|
| 242 |
|
| 0.63 |
| ||||||||||
| Non-GAAP metrics | $ | 1,652 |
| 41.9 | % | $ | 1,482 |
| 37.6 | % | $ | 170 | 4.3 | % | $ | - |
| $ | 25 |
| $ | 102 |
| $ | 0.27 |
|
| (a) Represents the net impacts from the strategic review of our European operating model which resulted in the closure of stores in the United Kingdom, and Ireland, as well as the sale of our stores in France to a third party partner. These impacts primarily include employee-related and lease-related costs. |
| (b) Metrics were computed individually for each line item; therefore, the sum of the individual lines may not equal the total. |
The Gap, Inc.
NET SALES RESULTS
UNAUDITED
The following table details the Company’s third quarter fiscal year 2022 and 2021 net sales (unaudited):
| ($ in millions) | ||||||||||||
| 13 Weeks Ended October 29, 2022 | Old Navy Global | Gap Global | Banana Republic Global | Athleta Global | Other (2) | Total | ||||||
| U.S. (1) | $ 1,936 | $ 690 | $ 448 | $ 326 | $ 4 | $ 3,404 | ||||||
| Canada | 184 | 95 | 47 | 7 | - | 333 | ||||||
| Europe | 1 | 58 | 1 | 1 | - | 61 | ||||||
| Asia | - | 143 | 14 | - | - | 157 | ||||||
| Other regions | 16 | 55 | 7 | 6 | - | 84 | ||||||
| Total | $ 2,137 | $ 1,041 | $ 517 | $ 340 | $ 4 | $ 4,039 | ||||||
| ($ in millions) | ||||||||||||
| 13 Weeks Ended October 30, 2021 | Old Navy Global | Gap Global | Banana Republic Global | Athleta Global | Other | Total | ||||||
| U.S. (1) | $ 1,899 | $ 676 | $ 410 | $ 317 | $ - | $ 3,302 | ||||||
| Canada | 185 | 102 | 47 | 3 | - | 337 | ||||||
| Europe | 1 | 89 | 2 | - | - | 92 | ||||||
| Asia | - | 141 | 14 | - | - | 155 | ||||||
| Other regions | 20 | 31 | 6 | - | - | 57 | ||||||
| Total | $ 2,105 | $ 1,039 | $ 479 | $ 320 | $ - | $ 3,943 |
| (1) U.S. includes the United States and Puerto Rico. |
| (2) Primarily consists of net sales from revenue generating strategic initiatives. |
The Gap, Inc.
REAL ESTATE
Store count, openings, closings, and square footage for our stores are as follows:
| January 29, 2022 | 39 Weeks Ended October 29, 2022 | October 29, 2022 | ||||||||
| Number of Store Locations | Number of Stores Opened | Number of Stores Closed | Number of Store Locations | Square Footage (in millions) | ||||||
| Old Navy North America (1) | 1,252 | 25 | 6 | 1,247 | 20.0 | |||||
| Gap North America | 520 | 2 | 18 | 504 | 5.4 | |||||
| Gap Asia | 329 | 4 | 74 | 259 | 2.2 | |||||
| Gap Europe (2) | 11 | - | - | - | - | |||||
| Banana Republic North America | 446 | 2 | 15 | 433 | 3.6 | |||||
| Banana Republic Asia | 50 | 2 | 3 | 49 | 0.2 | |||||
| Athleta North America | 227 | 29 | 5 | 251 | 1.0 | |||||
| Company-operated stores total | 2,835 | 64 | 121 | 2,743 | 32.4 | |||||
| Franchise (1) (2) | 564 | 77 | 39 | 637 | N/A | |||||
| Total | 3,399 | 141 | 160 | 3,380 | 32.4 |
| (1) The 24 Old Navy Mexico stores that were transitioned to Grupo Axo during the period are not included as store closures or openings for Company-operated and Franchise store activity. The ending balance for Old Navy North America excludes these stores and the ending balance for Franchise includes these stores. |
| (2) The 11 Gap Italy stores that were transitioned to OVS S.p.A. during the period are not included as store closures or openings for Company-operated and Franchise store activity. The ending balance for Gap Europe excludes these stores and the ending balance for Franchise includes these stores. |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221116006112/en/
CONTACT: Investor Relations Contact:
Nina Bari
Investor_relations@gap.comMedia Relations Contact:
Megan Foote
Press@gap.com
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: ONLINE RETAIL FASHION RETAIL DEPARTMENT STORES SPECIALTY
SOURCE: Gap Inc.
Copyright Business Wire 2022.
PUB: 11/17/2022 04:15 PM/DISC: 11/17/2022 04:16 PM
http://www.businesswire.com/news/home/20221116006112/en