Gap (GPS)

Margins

Gross margin of 42.5 percent for the third quarter increased 380 basis points compared with the prior year.

Operating margin was 13.9 percent for the third quarter compared with 11.1 percent for the prior year.

Margins

Gross margin of 39.7 percent increased 150 basis points for the second quarter compared with the prior year.

Operating margin was 11.6 percent for the second quarter compared with 10.7 percent for the prior year.

Margins

Gross margin of 39.6 percent decreased 10 basis points for the first quarter compared with the prior year.

Operating margin was 11.3 percent for the first quarter of both fiscal year 2009 and 2008.

Margins

Gross margin for fiscal year 2008 was 37.5 percent and increased 140 basis points compared with fiscal year 2007.

Operating margin for fiscal year 2008 was 10.7 percent compared with 8.3 percent for fiscal year 2007.

Margins

Gross margin of 38.7 percent increased 120 basis points in the third quarter compared with the prior year.

Operating margin for the third quarter was 11.1 percent compared with 9.5 percent for the third quarter of fiscal year 2007. The company continues to expect operating margin to be about 10 percent for fiscal year 2008.

Margins

Gross margin of 38.2 percent increased by 390 basis points in the second quarter compared with the prior year.

Operating margin for the second quarter was 10.7 percent. The company now expects operating margin to be about 10 percent for fiscal year 2008 compared with its previous guidance of 8.5 percent to 9.5 percent.

Margins

Gross margin of 39.7 percent increased 150 basis points in the first quarter compared with the prior year. Operating margin for the first quarter was 11.3 percent. The company continues to expect operating margin to be 8.5 percent to 9.5 percent for fiscal year 2008.

Margins

Gross margin for fiscal year 2007 was 36.1 percent and increased 60 basis points compared with fiscal year 2006. Operating margin for fiscal year 2007 was 8.3 percent. Operating margin for fiscal year 2008 is expected to be 8.5 percent to 9.5 percent.

Margins

Gross margin of 37.5 percent increased 0.1 point in the third quarter of fiscal year 2007 compared with the prior year. Operating margin for the third quarter was 9.5 percent, which is 2.2 points higher than last year. The company reaffirmed that it expects operating margin for fiscal year 2007 to be in the high single-digits. Please see the financials sections on www.gapinc.com for the company’s explanation of numerical range guidance.

Margins

Gross margin of 34.3 percent increased 1.3 points in the second quarter compared to the prior year. Operating margin for the second quarter was 6.1 percent. The company reaffirmed that it expects operating margin for fiscal year 2007 to be in the high single-digits. Please see the financials sections on www.gapinc.com for the company’s explanation of numerical range guidance.

Margins

Gross margin of 38.1 percent declined 2.1 points in the first quarter compared to the prior year, driven primarily by markdown activity at Gap brand. Operating margin for the first quarter was 7.3 percent. The company continues to expect that the operating margin for fiscal year 2007 will be in the high single-digits. Please see the financials sections on www.gapinc.com for the company’s explanation of numerical range guidance.

Margins

Gross margin for fiscal year 2006 was 35.4 percent and declined 120 basis points compared with fiscal year 2005. This decline was driven primarily by markdown and promotional activity at Gap and Old Navy. Operating margin for fiscal year 2006 was 7.4 percent. Operating margin for fiscal year 2007 is expected to be in the high single-digits. Please see the financials section on www.gapinc.com for the company’s explanation of numerical range guidance.

Margins

Gross margin was 37.4 percent, an increase of 2.1 points in the third quarter. Operating margin for the third quarter was 7 percent. For the reasons discussed in the earnings outlook section of this release, the company is revising its guidance for fiscal year 2006 operating margins down from 8.5 to 9 percent, to about 8 percent.

Margins

Gross margins declined 4.4 points in the second quarter compared to the prior year. Operating margin for the second quarter was 5 percent. For the reasons discussed in the earnings section of this release, the company is revising its guidance for fiscal year operating margins down from about 10.5 percent to 8.5 to 9 percent.

Margins

Gross margins of 40.2 percent declined 0.6 points in the first quarter compared to the prior year, due to lower merchandise margins and the de-leveraging of rent, occupancy and depreciation. Operating margin for the first quarter was 10.8 percent. The company reiterated that operating margins are expected to be 10 to 10.5 percent for fiscal year 2006.

Margins

Product promotions and markdowns contributed to a 260 basis point decline in gross margin for fiscal year 2005 compared with fiscal year 2004. Gross margin for fiscal year 2005 was 36.6 percent. Operating margin for fiscal year 2005 was 10.9 percent. Operating margin for fiscal year 2006 is expected to be 10.0 to 10.5 percent.

Margins

Gross margins declined 4.0 points in the third quarter compared to the prior year, due primarily to increased promotions and markdown driven by disappointing customer response to fall product. The operating margin for the third quarter was 8.8 percent compared with 11.5 percent for the same period last year. The company now expects full year 2005 operating margins of about 10 to 10.5 percent, down from its previous guidance of about 11.5 percent.

Margins

Gross margins declined 1.2 points in the second quarter compared to the prior year. Operating margin for the second quarter was 11.5 percent. As previously announced, the company reversed a sublease loss reserve during the second quarter that benefited operating margins. The amount of the reserve reversal was $58 million pre-tax. For reasons similar to those stated for the revised earnings guidance, the company also revised its guidance for full year 2005 operating margins to about 11.5 percent, down from previous guidance of about 13 percent.

Margins

Gross margins declined 2.3 points in the first quarter compared to the prior year, which was entirely driven by lower merchandise margins. Operating margin for the first quarter was 12.8 percent. The company reiterated that operating margins are still expected to be about 13 percent for the full year 2005.

Margins

The company reiterated its operating margin guidance of about 13 percent for 2005 and stated that for 2006 the company expects operating margins to continue to expand into the range of 13 to 14 percent. The expected improvement in operating margins will be driven primarily by gross margins.

Margins

Disciplined inventory and fleet management helped drive a 150 basis point improvement in gross margin for the year. Gross margin for the fourth quarter was 36.6 percent. Operating margin for the full year 2004, excluding charges related to early retirement of debt, was 12.7 percent. Operating margin for the full year of 2005 is expected to be about 13 percent. This estimate does not reflect expenses related to the expensing of stock options, which are expected to begin in the third quarter. This estimate reflects the proper accounting for leases.