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This excerpt taken from the GPS 10-Q filed Jun 9, 2009. Overview Financial highlights include:
Net sales for the first quarter of fiscal 2009 were down 8 percent from the prior year comparable period. Despite this, our cash flow generation remains healthy and we maintain a strong balance sheet. As of May 2, 2009, cash, cash equivalents, and restricted cash were $1.7 billion with no debt outstanding. We believe our cash balances and cash flows from operations will be sufficient to fund our business operations, capital expenditures, and dividends. Our business and financial priorities for fiscal 2009 are as follows:
These excerpts taken from the GPS 10-K filed Mar 27, 2009. Overview We are a global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. We operate stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. We also have franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from us, under our brand names. In addition, our U.S. customers can shop online at www.gap.com, www.oldnavy.com, www.bananarepublic.com, www.piperlime.com, and www.athleta.com. Most of the products sold under our brand names are designed by us and manufactured by independent sources. We also sell products that are designed and manufactured by branded third parties. In September 2008, we acquired all of the outstanding capital stock of Athleta, Inc. (“Athleta”), a women’s sports and active apparel company based in Petaluma, California, for an aggregate purchase price of $148 million. The acquisition will allow us to enhance our presence in the growing women’s active apparel sector in the United States. We believe this acquisition complements our brands and allows us to leverage our online platform to expand into this significant retail sector. See Note 3 of Notes to the Consolidated Financial Statements. We identify our operating segments according to how our business activities are managed and evaluated. Beginning in the fourth quarter of fiscal 2008, we have two reportable segments: Stores and Direct. Fiscal 2008 and 2007 had 52 weeks versus 53 weeks in fiscal 2006. Net sales numbers for the fourth quarter and year for fiscal 2006 include this additional week; however, comparable store sales calculations exclude the 53rd week. Financial highlights include:
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Macroeconomic conditions deteriorated in the third quarter of fiscal 2008 and continued in the fourth quarter. Net sales for the fourth quarter of fiscal 2008 were down 13 percent from the prior year comparable period. Despite this, our cash flow generation remains healthy and we have a strong balance sheet. As of January 31, 2009, cash, cash equivalents, and restricted cash were $1.8 billion and long-term debt of $50 million, classified as current, was repaid in March 2009. We believe our cash balances and cash flows from operations will be sufficient for the foreseeable future. During this challenging economic environment we are focused on the following priorities:
Overview Piperlime, and Athleta brands. We operate stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. We also have franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from us, under our brand names. In addition, our U.S. customers can shop online at www.gap.com, www.oldnavy.com, www.bananarepublic.com, www.piperlime.com, and www.athleta.com. Most of the products sold under our brand names are designed by us and manufactured by independent sources. We also sell products that are designed and manufactured by branded third parties. In September 2008, we acquired all of the outstanding capital stock of Athleta, Inc. (“Athleta”), a women’s sports and active apparel company We comparable store sales calculations exclude the 53rd week. Financial highlights include:
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Macroeconomic conditions deteriorated in the third
This excerpt taken from the GPS 10-Q filed Dec 9, 2008. Overview Financial highlights include:
Macroeconomic conditions deteriorated in the third quarter and we believe that these conditions will continue in the fourth quarter. Our cash flow generation remains healthy and we have a strong balance sheet. As of November 1, 2008, cash, cash equivalents and short-term investments were $1.6 billion and long-term debt, all of which is classified as current, was $188 million. We believe our cash balances and cash flows from operations will be sufficient for the foreseeable future. During this challenging economic environment we are focused on the following priorities:
Also see the section entitled “Risk Factors—The recent changes in general economic conditions, and the impact on consumer confidence and consumer spending, could adversely impact our results of operations” in Item 1A of Part II of this Form 10-Q.
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Table of ContentsThis excerpt taken from the GPS 10-Q filed Sep 9, 2008. Overview Financial highlights during the second quarter and the first half of fiscal 2008 include:
Our business and financial priorities for fiscal 2008 continue to be as follows:
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Table of ContentsThis excerpt taken from the GPS 10-Q filed Jun 10, 2008. Overview Significant financial items during the first quarter of fiscal 2008 include:
Our financial priorities for fiscal 2008 are as follows: driving earnings growth through inventory discipline which supports improved gross margin, continuing cost management, improving return on invested capital, and continuing to distribute excess cash to shareholders. These excerpts taken from the GPS 10-K filed Mar 28, 2008. OVERVIEW We are a global specialty retailer operating retail and online stores selling casual apparel, accessories, and personal care products for men, women, and children under the Gap, Old Navy, Banana Republic, and Piperlime brands. We operate stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. We also have franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in Asia, Europe and the Middle East. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from us, under our brand names. In addition, our U.S. customers can shop online at www.gap.com, www.bananarepublic.com, www.oldnavy.com, and www.piperlime.com. We design virtually all of our products, which are manufactured by independent sources, and sell them under our brands. We also offer products that are designed and manufactured by branded third parties in our online shoe store, Piperlime, which was launched in October 2006. Fiscal 2007 and 2005 had 52 weeks versus 53 weeks in fiscal 2006. Net sales numbers for the fourth quarter and year for fiscal 2006 include this additional week; however, comparable store sales calculations exclude the 53rd week. Significant financial items during fiscal 2007 include:
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In fiscal 2007, we focused on three critical areas to restore the health of the Company: simplifying the business and holding each brand accountable to its priorities, managing our inventory with discipline to enable growth in gross margin and gross profit, and focusing on product and target customers, specifically at Gap and Old Navy. This work helped us increase net earnings and has created the important groundwork for our future. In fiscal 2008, we will focus on four priorities: driving earnings through inventory discipline which supports improved gross margin, continuing cost management, improving return on invested capital, and continuing to focus on product across all brands. We remain committed to returning excess cash to our stockholders through dividends and share repurchases. In February 2008, we announced that our Board of Directors authorized an additional $1 billion for our share repurchase program and a plan to increase the annual dividend per share by six percent, from $0.32 per share in fiscal 2007 to $0.34 per share in fiscal 2008. OVERVIEW Old Navy, Banana Republic, and Piperlime brands. We operate stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. We also have franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in Asia, Europe and the Middle East. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from us, under our brand names. In addition, our U.S. customers can shop online at www.gap.com, www.bananarepublic.com, www.oldnavy.com, and www.piperlime.com. We design virtually all of our products, which are manufactured by independent sources, and sell them under our brands. We also offer products that are designed and manufactured by branded third parties in our online shoe store, Piperlime, which was launched in October 2006. Fiscal 2007 and 2005 had 52 weeks versus 53 weeks in fiscal 2006. Net SIZE="2">Significant financial items during fiscal 2007 include:
Gap Inc. Form 10-KSIZE="1"> 17 Table of Contents
In fiscal 2007, we focused on three critical areas to restore the health of the In February 2008, we announced that our Board of Directors authorized an additional $1 billion for our share repurchase program and a plan to increase the annual This excerpt taken from the GPS 10-Q filed Dec 12, 2007. Overview Net sales were $3.9 billion for the third quarter of fiscal year 2007 compared with $3.9 billion for the third quarter of fiscal year 2006, and comparable store sales decreased five percent in each of the third quarters of fiscal years 2007 and 2006. Due to the 53rd week in fiscal year 2006, comparable store sales for the third quarter of fiscal year 2007 are
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Table of Contentscompared with the thirteen weeks ended November 4, 2006. Our online net sales for the third quarter of fiscal year 2007 were $247 million compared with $182 million in the prior year comparable period, which represents an increase of approximately 36 percent. Gross margin for the third quarter of fiscal year 2007 was 37.5% compared with 37.4% for the prior year comparable period. Net earnings were $238 million for the third quarter of fiscal year 2007 compared with $189 million in the prior year comparable period, an increase of approximately 26 percent. Earnings per diluted share for the third quarter of fiscal year 2007 were $0.30 compared with $0.23 for the prior year comparable period. We generated free cash flow of $484 million, defined as net cash provided by operating activities less purchases of property and equipment, for the thirty-nine weeks ended November 3, 2007 (for a reconciliation of free cash flow, a non-GAAP measure, to a GAAP measure, see the Financial Condition section). We also paid a dividend of $0.08 per share in the third quarter of fiscal year 2007. In fiscal year 2007, we have been focused on improving performance, especially at Old Navy and Gap brand. During the third quarter of fiscal year 2007, we maintained a disciplined focus on inventory management and continued to refine our product to align with our target customer while focusing on improved store execution. This excerpt taken from the GPS 10-Q filed Sep 12, 2007. Overview Net sales were $3.7 billion for the second quarter of fiscal year 2007 compared with $3.7 billion for the second quarter of fiscal year 2006, and comparable store sales decreased 5 percent and 5 percent, respectively, in the second quarters of
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Table of Contentsfiscal 2007 and 2006. Note that due to the 53rd week in fiscal year 2006, second quarter of fiscal year 2007 comparable store sales are compared with the thirteen weeks ended August 5, 2006. While we saw progress in certain product categories such as dresses and knits, overall response to our Summer product was mixed. Gross margin increased 1.3 percentage points for the second quarter of fiscal year 2007 from the prior year comparable period due to higher merchandise margins, primarily driven by Old Navy, offset with higher occupancy costs as a percentage of sales. Our online net sales for the second quarter of fiscal year 2007 were $172 million compared with $136 million in the prior year comparable period, an increase of approximately 26 percent. Net earnings were $152 million for the second quarter of fiscal year 2007 compared with $128 million in the prior year comparable period, an increase of approximately 19 percent. Net earnings per diluted share were $0.19, compared to $0.15, which was $0.04 higher than the prior year comparable period. We generated free cash flow of $347 million, defined as net cash provided by operating activities less purchases of property and equipment for the twenty-six weeks ended August 4, 2007 (for a reconciliation of free cash flow, a non-GAAP measure, to a GAAP measure, see the Liquidity section in this Management’s Discussion and Analysis). We also paid a dividend of $0.08 per share in the second quarter of fiscal year 2007. In fiscal year 2007, we are focusing on three priorities: fixing our core business by creating the right product and store experience; retaining and developing the best talent in the industry; and examining our organizational structure to ensure that we enable our brands to make decisions and effect change more efficiently. In the first half of fiscal year 2007, we strengthened the teams at Gap and Old Navy and set certain product and operational strategies, as well as refined our target customers for those two brands. We took the following actions through August of fiscal year 2007:
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Table of ContentsThis excerpt taken from the GPS 10-Q filed Jun 12, 2007. Overview Net sales were $3.6 billion for the first quarter of 2007 compared with $3.4 billion for the first quarter of 2006, and comparable store sales decreased 4 percent and 9 percent, respectively. Note that due to the 53rd week in fiscal year 2006, first quarter 2007 comparable store sales are compared with the thirteen-week period ended May 6, 2006. While we saw progress in certain product categories such as dresses and shorts, overall response to our Spring products was
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Table of Contentsmixed. Gross margin decreased 2.1 percentage points for the first quarter of fiscal year 2007 from the prior year comparable period due to lower merchandise margins, primarily driven by Gap brand, combined with higher occupancy costs as a percent of sales. Our online net sales for the first quarter of fiscal year 2007 were $195 million compared with $159 million in the prior year. Net earnings were $178 million for the first quarter of fiscal year 2007, 26 percent lower than the prior year comparable period. Earnings per diluted share was $0.22, which was $0.06 lower than the prior year comparable period. We generated free cash flow of $159 million, defined as net cash provided by operating activities less the purchase of property and equipment (for a reconciliation of free cash flow, a non-GAAP measure, to a GAAP measure, see the Liquidity section in this Management’s Discussion and Analysis). We also paid a dividend of $0.08 per share in the first quarter of fiscal year 2007. In fiscal year 2007, we are focusing on three priorities: fixing our core business by creating the right product and store experience; retaining and developing the best talent in the industry; and examining our organizational structure to ensure that we enable our brands to make decisions and effect change more efficiently. In the first quarter of fiscal year 2007, we strengthened the teams at Gap and Old Navy and set certain product and operational strategies. We are refining our target customers for those two brands. We took the following actions in the first quarter of fiscal year 2007:
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Table of ContentsThis excerpt taken from the GPS 10-K filed Apr 2, 2007. OVERVIEW Fiscal 2006 was a challenging year for us. Net sales were $15.9 billion compared with $16.0 billion last year, traffic was weak and comparable store sales decreased by 7 percent compared with a decrease of 5 percent last year. While we saw progress at Banana Republic where customers responded well to our improved product assortments, product acceptance at Gap and Old Navy brands continued to be a challenge. As a result, additional promotions and markdowns drove a 4 percent decrease in gross profit from $5.9 billion in fiscal 2005 to $5.6 billion in fiscal 2006. Piperlime.com was launched successfully in the third quarter and we opened franchised stores in the Middle East and Asia. We invested in marketing and stores in an effort to turnaround our business performance which contributed to a 9 percent increase in operating expenses from $4.1 billion in fiscal 2005 to $4.5 billion in fiscal 2006. Combined, these factors contributed to a 25 percent decrease in diluted earnings per share of $0.93 for the 53 weeks ended February 3, 2007 compared with $1.24 for the 52 weeks ended January 28, 2006. Despite these disappointing results, we generated free cash flow of $678 million defined as the net cash provided by operating activities less the purchase of property and equipment (for a reconciliation of free cash flow, a non-GAAP measure, to a GAAP measure, see the Liquidity section in this Management’s Discussion and Analysis). We utilized our excess cash to repurchase $1 billion of common stock, and increased our annual dividend from $0.18 per share to $0.32 per share for a total of $265 million. In 2007, we are focusing on three priorities: fixing our core business by creating the right product and store experience, retaining and developing the best talent in the industry, and examining our organization structure to ensure that we enable our brands to make decisions and effect change more efficiently. We remain committed to returning excess cash to our stockholders through dividends and share repurchases, and maintaining sufficient cash on the balance sheet to support the needs of our business and to withstand unanticipated business volatility. Since January 2007, we have taken the following actions:
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