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Feb 01, 2025
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%.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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