Gap, Inc. (the) · NYSE:GAP

Gap, Inc. (the) — Q3 2018 Earnings Presentation

9 slides from Gap, Inc. (the)'s earnings presentation, Nov 20, 2018

  1. Slide 1: Gap Inc. Fiscal 2018 Third Quarter Earnings Results

    Exhibit 99.3 GAP INC. FISCAL 2018 THIRD QUARTER EARNINGS RESULTS ART PECK PRESIDENT & CHIEF EXECUTIVE OFFICER TERI LIST-STOLL EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER

  2. Slide 2: Disclosure Statement: Forward Looking Statements

    DISCLOSURE STATEMENT FORWARD LOOKING STATEMENTS This conference call and webcast contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements.

  3. Slide 3: Q3 2018: Gap Inc. Comp Sales

    Q3 2018: GAP INC. COMP SALES 7% 7% 1 Year Comps 2 Year Comps 5% 5% 3% 3% 3% 3% 2% 2% 3% 2% 1% 1% 1% 0% 0% -1% -2% -3% -4% -5% -6% Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 3

  4. Slide 4: Q3 2018: U.S. Stores Traffic Trends

    Q3 2018: U.S. STORES TRAFFIC TRENDS Q4’17 Q1’18 Q2’18 Q3’18 +  _ _ +  + _ +  _ _ _  _ _ : Beat to industry traffic : Miss to industry traffic + : Positive traffic 4

  5. Slide 5: Strength in Online Sales

    STRENGTH IN ONLINE SALES $3.5B $3.5B On track to reach over $3.5 billion in online sales in 2018. $3.0B $2.5B $2.0B FY 2016 FY 2017 FY 2018 Gap Inc. Annual Online Sales 5

  6. Slide 6: Q3 P&L Summary

    Q3 P&L SUMMARY IN MILLIONS Q3 2018 Without Q3 2018 Without Presentation Presentation Q3 2018 Q3 2017 Changes from ASC Changes from ASC 606 606 vs. Q3 2017 (1) NET SALES $4,089 $3,919 $3,838 +2% COMP 0% 0% 3% GROSS PROFIT $1,623 $1,495 $1,525 (2%) % 39.7% 38.1% 39.7% (160bps) MERCHANDISE MARGIN (90bp

  7. Slide 7: Q3 2018: Presentation Changes from ASC 606

    Q3 2018: PRESENTATION CHANGES FROM ASC 606 IN MILLIONS 13 WEEKS ENDED NOVEMBER 3, 2018 BALANCES WITHOUT RECLASSIFICATION AS REPORTED PRESENTATION S(1) CHANGES from ASC 606(2) NET SALES $4,089 $(170) $3,919 COST OF GOODS SOLD AND OCCUPANCY EXPENSES 2,466 (42) 2,424 GROSS PROFIT 1,623 (128) 1,495 OPER

  8. Slide 8: Fiscal 2018 Outlook as of November 20, 2018

    FISCAL 2018 OUTLOOK AS OF NOVEMBER 20, 2018 Full Fiscal Year 2018 Reported Diluted Earnings per Share $2.55 - $2.60 Comp Sales Flat to up slightly Net Company-Operated Store Openings About 25 Capital Expenditures About $750 million Effective Tax Rate About 25%(1) Share Repurchases About $400 (1) The

  9. Slide 9: BANANA REPUBLIC

    BANANA REPUBLIC aip @ATHLETA INTERMIX HILL CITYZ Gap Inc.

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