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Feb 01
Gap Q4 2024 Earnings Report
Gap Inc. reported a decline in Q4 2024 net sales but saw comparable sales growth and stable margins.
Key Takeaways
Gap Inc. reported Q4 2024 net sales of $4.1 billion, down 3% year-over-year, largely due to the loss of an extra week in fiscal 2023. Comparable sales increased by 3%, and the company maintained a gross margin of 38.9%. Net income stood at $206 million, with diluted EPS of $0.54. Operating income reached $259 million, with an operating margin of 6.2%. Online sales represented 41% of total sales.
Q4 2024 net sales decreased by 3% to $4.1 billion, impacted by a calendar shift.
Comparable sales grew by 3%, showing continued consumer demand.
Net income for the quarter was $206 million, with diluted EPS of $0.54.
Operating margin was 6.2%, and gross margin remained stable at 38.9%.
Gap
Gap
Gap Revenue by Segment
Gap Revenue by Geographic Location
Revenue by Segment
Old Navy Global Revenue
CapyFin.comGap Global Revenue
CapyFin.comBanana Republic Global Revenue
CapyFin.comAthleta Global Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comCanada Revenue
CapyFin.comOther regions Revenue
CapyFin.com Forward Guidance
Gap Inc. expects modest sales growth in fiscal 2025, with a focus on maintaining operating margin improvements.
Positive Outlook
- Net sales expected to grow between 1% and 2%.
- Operating income projected to increase by 8% to 10%.
- Gross margin expected to expand slightly year-over-year.
- Operating expense as a percentage of net sales projected to leverage slightly.
- A 10% increase in the quarterly dividend to $0.165 per share.
Challenges Ahead
- Macroeconomic pressures, including inflation and tariffs, may impact consumer spending.
- Net interest income is expected to decline to approximately $15 million.
- A projected effective tax rate increase to 26%.
- Planned net store closures of approximately 35 locations.
- Continued work needed to regain momentum at Athleta.
Revenue & Expenses
Visualization of income flow from segment revenue to net income