Gap Inc. has recently released its 10-K report, revealing a snapshot of its fiscal year 2024 performance. The retail giant, founded in 1969 and headquartered in San Francisco, operates under the iconic brands of Old Navy, Gap, Banana Republic, and Athleta. The company's products span from apparel and accessories to personal care items for men, women, and children, and are sold through company-operated stores, franchise stores, websites, and third-party arrangements.
In fiscal 2024, Gap Inc. reported a 1% increase in net sales, reaching $15.1 billion compared to $14.9 billion in fiscal 2023. Store and franchise sales remained flat, while online sales saw a 4% uptick. Gross profit for fiscal 2024 was $6.2 billion, with a gross margin of 41.3%, an improvement from the 38.8% gross margin in fiscal 2023. Operating income for fiscal 2024 doubled to $1.1 billion compared to $560 million in fiscal 2023. Net income for fiscal 2024 was $844 million, up from $502 million in fiscal 2023, with diluted earnings per share at $2.20 compared to $1.34 in fiscal 2023. Merchandise inventory as of fiscal 2024 increased by 4% compared to fiscal 2023.
The company is focused on strategic priorities, including financial and operational rigor, brand revitalization, strengthening the digital platform, talent acquisition, and integrating sustainability into business practices. However, macroeconomic factors such as inflationary pressures, global geopolitical instability, and government policy changes continue to pose challenges.
Gap Inc. operates under four main segments: Old Navy Global, Gap Global, Banana Republic Global, and Athleta Global. In fiscal 2024, Old Navy Global and Gap Global reported positive comparable sales growth, with increases of 3% and 4% respectively. Banana Republic Global and Athleta Global also saw improvements, with Banana Republic Global reporting a 1% increase and Athleta Global maintaining a steady position.
The company also provided insights into its store count, openings, and closings. As of February 1, 2025, the company had 2,506 company-operated stores, a decrease from 2,562 in the previous year. Additionally, the company's liquidity and capital resources were detailed, showing an increase in cash and cash equivalents from $1.873 billion in 2024 to $2.335 billion in 2025, and a working capital of $1.947 billion.
Gap Inc.'s 10-K report provides a comprehensive view of its financial performance, strategic priorities, and operational segments, offering investors and stakeholders valuable insights into the company's position in the retail industry. The market has reacted to these announcements by moving the company's shares -3.2% to a price of $19.46. If you want to know more, read the company's complete 10-K report here.
