29 slides from Gap, Inc. (the)'s earnings presentation, Aug 28, 2025
Slide 1: Q2 Fiscal 2025 Second Quarter Results
Q2 Fiscal 2025 SECOND QUARTER RESULTS August 28, 2025
Slide 2: Forward Looking Statements / Non-GAAP Financial Measures
Forward Looking Statements / Non-GAAP Financial Measures FORWARD LOOKING STATEMENTS These materials and related earnings press release and conference call contain forward-looking statements within the “safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements ot
Slide 3: Strategic Priorities
Strategic Priorities Maintain Financial Reinvigorate Strengthen Energize & Operational Our Brands Our Platform Our Culture Rigor To elevate our To drive both relevance By building and To fuel creativity and performance, improve and revenue, inspired sharpening our connectivity while execution consis
Slide 4: 2025 Second Quarter Highlights
2025 Second Quarter Highlights • Delivered net sales of $3.7 billion, flat year-over- year, with comparable sales up 1% • 6th consecutive quarter of positive comparable sales • Operating margin of 7.8% • EPS of $0.57, increased 6% versus last year’s EPS of $0.54 • Cash, cash equivalents and short-te
Slide 5: Q2 2025 Snapshot Of Key Financial Metrics
Q2 2025 NET SALES COMPS GROSS MARGIN Snapshot Of Key $3.7B +1% 41.2% FLAT VS LY VS +3% LY -140 BPS VS LY Financial Metrics OPEX% OP MARGIN EPS 33.4% 7.8% $0.57 -130 BPS VS LY -10 BPS VS LY VS $0.54 LY
Slide 6: Gap Inc. net sales and comparable sales
Flat +1% NET SALES COMPARABLE GROWTH (1) SALES 6 CONSECUTIVE QUARTERS OF POSITIVE COMPARABLE SALES 1. Represents second quarter fiscal 2025 year-over-year net sales growth.
Slide 7: Old Navy net sales and comparable sales
1% +2% NET SALES COMPARABLE GROWTH (1) SALES #1 SPECIALTY APPAREL BRAND AND RETAILER IN THE U.S. (2) 1. Represents second quarter fiscal 2025 year-over-year net sales growth. 2. Source: Circana, U.S. Apparel Market, R3M ending July 2025.
Slide 8: Gap brand net sales and comparable sales
1% +4% NET SALES COMPARABLE GROWTH (1) SALES 7 CONSECUTIVE QUARTERS OF POSITIVE COMPARABLE SALES 1. Represents second quarter fiscal 2025 year-over-year net sales growth.
Slide 9: Banana Republic: foundational work resonating with consumers
(1%) +4% NET SALES COMPARABLE GROWTH (1) SALES Foundational work to reestablish the brand is resonating with consumers 1. Represents second quarter fiscal 2025 year-over-year net sales growth.
Slide 10: Athleta: fixing the fundamentals to reset the brand
(11%) (9%) NET SALES COMPARABLE GROWTH (1) SALES Remain focused on fixing the fundamentals to reset the brand for the long term and welcomed new brand leadership 1. Represents second quarter fiscal 2025 year-over-year net sales growth.
Slide 11: Q2 2025 Financial Position
Q2 2025 Financial Position CASH, CASH EQUIVALENTS, & SHORT-TERM INVESTMENTS: • $2.4 billion, up 13% versus last year ENDING INVENTORY: • Increased 9% versus last year primarily as a result of accelerated receipts and higher cost due to tariffs. NET CASH FROM OPERATING ACTIVITIES: • $308 million CAPI
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities 1) INVEST IN BUSINESS • Targeting FY 2025 CapEx of ~$500-550 million 2) PAY AN ATTRACTIVE DIVIDEND • Returned $62 million to shareholders in dividends in Q2 2025 • Board of Directors approved Q3 2025 dividend of $0.165 per share 3) REPURCHASE SHARES TO OFFSET DILUTION O
Slide 13: Commitment to Sustainability Performance
Commitment to Sustainability Performance BRIDGING THE BRIDGING THE BRIDGING THE EQUITY GAP CLIMATE GAP OPPORTUNITY GAP 85% Net Zero Top 10 of strategic factories had at least 50% by 2050 target approved in retail ranking by The American of women workers enroll in P.A.C.E. or by the Science Based Opp
Slide 14: Fiscal 2025 Outlook
Fiscal 2025 Outlook METRIC FULL YEAR 2025 OUTLOOK Net sales 1% to 2% growth 6.7% to 7.0% including an estimated 100-110 bps of net Operating margin tariff impact Net interest income Approximately $15 million Effective Tax Rate Approximately 27% Capital Expenditures Approximately $500 to $550 million
Slide 15: Appendix
Appendix SUPPLEMENTAL MATERIALS
Slide 16: Supplemental materials contents
I. Statement of Operations Highlights II. Balance Sheet Highlights III. Cash Flow Statement Highlights IV. Other Metrics NOTE: V. Comparable Sales by Global Brand All dollar, share, and square footage VI. Net Sales by Brand and Geography amounts are shown in millions, with the exception of per share
Slide 17: I. Statement of Operations Highlights
I. Statement of Operations Highlights 1. Earnings per share are computed individually for each of the periods presented; therefore, the sum of the earnings per share amounts for the quarters may not equal the total for the years. 2. The fiscal year ended February 3, 2024 (FY 2023) consisted of 53 we
Slide 18: I. Statement of Operations Highlights (Adjusted)
I. Statement of Operations Highlights (Adjusted) 1. There are no adjusted metrics during these periods. Please refer to the Statement of Operations Highlights for GAAP metrics. 2. FY 2023 amounts primarily related to employee-related costs and consulting costs related to our previously announced act
Slide 19: II. Balance Sheet Highlights
II. Balance Sheet Highlights
Slide 20: III. Cash Flow Statement Highlights
III. Cash Flow Statement Highlights 1. Please refer to each respective period’s earnings press release for further information on the total cash, cash equivalents, and restricted cash.
Slide 21: IV. Other Metrics
IV. Other Metrics 1. Online sales primarily include sales originating from our online channel including those that are picked up or shipped from stores and net sales from revenue-generating strategic initiatives. 2. Operating lease cost is included within Occupancy expenses disclosed within the Segm
Slide 22: V. Comparable Sales by Global Brand
V. Comparable Sales by Global Brand Comp sales include the results of Company-operated stores and sales through online channels. The calculation of Gap Inc. Comp sales excludes the results of the franchise and licensing business. A store is included in the Comp sales calculations when it has been op
Slide 23: VI. Net Sales by Brand and Geography
VI. Net Sales by Brand and Geography 1. U.S. includes the United States and Puerto Rico. 2. Primarily consists of net sales from revenue-generating strategic initiatives.
Slide 24: Net Sales by Brand and Geography: Fiscal Year 2024
IV. Q4'24 Old Navy Banana Republic Athleta (2) Fiscal Year $ millions Global Gap Global Global Global Other Total (1) U.S. $ 2,043 $ 756 $ 479 $ 385 $ 16 $ 3,679 Canada 154 88 46 10 - 298 2024 Other regions Total $ 15 2,212 $ 136 980 $ 20 545 $ 396 1 $ 16 - $ 172 4,149 NET SALES BY BRAND AND GEOGRAP
Slide 25: Net Sales by Brand and Geography: Fiscal Year 2023
IV. Q4'23 (1) Old Navy Banana Republic Athleta Other (3) Fiscal Year $ m illions Global Gap Global Global Global Total (2) U.S. $ 2,107 $ 768 $ 494 $ 407 $ 17 $ 3,793 2023 Canada 171 99 48 12 - 330 Other regions 10 140 25 - - 175 Total $ 2,288 $ 1,007 $ 567 $ 419 $ 17 $ 4,298 NET SALES BY BRAND AND
Slide 26: Net Sales by Brand and Geography: Fiscal Year 2022
IV. Q4'22 Banana Old Navy Republic Athleta (2) $ m illions Global Gap Global Global Global Other Total Fiscal Year U.S. (1) $ 1,982 $ 709 $ 505 $ 423 $ 2 $ 3,621 Canada 165 91 49 10 - 315 2022 Europe - 35 1 1 - 37 Asia - 181 17 - - 198 Other regions 19 45 6 2 - 72 Total $ 2,166 $ 1,061 $ 578 $ 436 $
Slide 27: Net Sales by Brand and Geography: Fiscal Year 2021
IV. Q4'21 Banana Old Navy Republic (2) (3) $ m illions Global Gap Global Global Athleta Other Total Fiscal Year (1) U.S. $ 2,097 $ 761 $ 532 $ 428 $ 2 $ 3,820 Canada 178 100 54 9 - 341 2021 Europe 1 54 2 1 - 58 Asia 1 219 21 - - 241 Other regions 30 30 4 1 - 65 Total $ 2,307 $ 1,164 $ 613 $ 439 $ 2
Slide 28: Net Sales by Brand and Geography: Fiscal Year 2020
IV. Q4'20 Banana Old Navy Republic $ m illions Global Gap Global Global Other (2) Total Fiscal Year U.S. (1) $ 2,189 $ 704 $ 438 $ 457 $ 3,788 Canada 163 78 40 - $ 281 2020 Europe - 80 2 - $ 82 Asia - 207 20 - $ 227 Other regions 23 19 4 - $ 46 Total $ 2,375 $ 1,088 $ 504 $ 457 $ 4,424 NET SALES BY
Slide 29: Thank You
Thank You