The Gap, Inc. (GAP) Tops Q3 EPS by 14c

Current FY24 Outlook

Prior FY24 Outlook

FY23 Results

Net sales

Up 1.5% to 2.0%

on a 52-week basis

Up slightly on a

52-week basis

$14.9 billion¹

Gross margin

Approximately

220 bps expansion

Approximately

200 bps expansion

38.8 %

Operating expense

Approximately

$5.1 billion

Approximately

$5.1 billion

$5.17 billion (adjusted)²

Operating income

Mid to High

60% growth range

Mid to High

50% growth range

$606 million (adjusted)³

Effective tax rate

Approximately 26.5%

Approximately 28%

9.7 %

Capital expenditures

Approximately

$500 million

Approximately

$500 million

$420 million

1 Fiscal year 2023 consisted of 53 weeks and the extra week drove approximately $160 million of incremental sales.

2 Fiscal year 2023 adjusted operating expense of $5.17 billion excludes $89 million in restructuring costs and a $47 million gain on sale.

3 Fiscal year 2023 adjusted operating income of $606 million excludes $93 million in restructuring costs and a $47 million gain on sale.