Gap Inc. reported significant financial improvements in its latest 10-Q filing for the quarter ending August 3, 2024. The company achieved net sales of $3,720 million for the 13 weeks, marking a 5% increase from $3,548 million in the same period last year. For the first half of fiscal 2024, net sales reached $7,108 million, up from $6,824 million, reflecting a 4% growth.
Gross profit for the second quarter was $1,583 million, compared to $1,333 million in the prior year, resulting in a gross margin of 42.6%, an increase from 37.6%. Operating income also saw a substantial rise, reaching $293 million for the quarter, up from $106 million in the previous year. Net income for the quarter was $206 million, compared to $117 million in the same period last year, leading to earnings per share (EPS) of $0.54, up from $0.32.
The company’s total assets increased to $11,509 million as of August 3, 2024, from $10,850 million a year earlier. Cash and cash equivalents also rose to $1,900 million, up from $1,350 million in the prior year. Retained earnings increased significantly to $2,672 million, compared to $2,128 million a year ago.
Sales performance varied across segments, with Old Navy Global reporting net sales of $1,953 million for the quarter, up from $1,777 million. Gap Global sales increased slightly to $579 million from $542 million, while Banana Republic Global remained stable at $414 million. Athleta Global reported $327 million, unchanged from the previous year.
The company has made strategic decisions impacting its operations, including the transition of its Gap Greater China operations to Baozun Inc., which was completed on January 31, 2023. As of August 3, 2024, Gap Inc. operated 3,568 stores, reflecting a net increase of 8 stores during the period.
In terms of financing, Gap Inc. has $1.5 billion in Senior Notes and no borrowings under its asset-based revolving credit facility as of the reporting date. The company continues to maintain a share repurchase authorization of $1 billion, with $476 million remaining as of August 3, 2024.
Overall, Gap Inc. demonstrated strong financial performance and strategic growth initiatives in the latest quarter, positioning itself favorably in the retail market.
About GAP INC
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