Gap, Inc. (the) · NYSE:GAP
Gap, Inc. (the) — Q3 2022 Earnings Presentation
14 slides from Gap, Inc. (the)'s earnings presentation, Nov 17, 2022
Slide 1: Gap Inc. Third Quarter Earnings Results
Gap Inc. Fiscal 2022 Bob Martin INTERIM CHIEF EXECUTIVE OFFICER Katrina O’Connell CHIEF FINANCIAL OFFICER THIRD QUARTER EARNINGS RESULTS
Slide 2: Forward Looking Statements / Non-GAAP Financial Measures
Forward Looking Statements / Non-GAAP Financial Measures 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 histori
Slide 3: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights • Net sales of $4.04 billion, up 2% y/y; Comparable sales up 1% • Online sales increased 5% y/y; Store sales increased 1% y/y • Reported gross margin of 37.4%, down 470bps y/y; Adjusted gross margin of 38.7%, down 320bps y/y (1) • Reported operating margin of 4.6%; Adjus
Slide 4: P&L Summary (Reported)
Q3 2022 P&L Summary (REPORTED) UNAUDITED Q3 Q3 Q3 2022 vs. ($ Millions) 2022 (1) 2021 (2) Q3 2021 Net Sales $4,039 $3,943 +2% Comparable Sales +1% (1%) Gross Profit $1,509 $1,661 (9%) % of Sales 37.4% 42.1% (470 bps) Merchandise Margin B/(W) (480 bps) ROD % of Sales B/(W) +10 bps Operating Expenses
Slide 5: P&L Summary (Adjusted)
Q3 2022 P&L Summary (ADJUSTED) UNAUDITED Q3 Q3 Q3 2022 vs. ($ Millions) 2022 2021 Q3 2021 Net Sales $4,039 $3,943 +2% Update format of slide to Comparable Sales +1% (1%) include photo Adjusted Gross Profit $1,562 (1) $1,652 (1) (5%) % of Sales 38.7% (1) 41.9% (1) (320 bps) Merchandise Margin B/(W) (
Slide 6: Net Sales Growth
Q3 2022 Net Sales Growth +2% +2% 0% +8% +6%
Slide 7: Comparable Sales
Q3 2022 Comparable Sales +1% (1%) +4% +10% 0% NORTH AMERICA COMP: 0%
Slide 8: Gap Inc. Power Plan
Gap Inc. Power Plan Power of our Brands Grow purpose-led, billion-dollar lifestyle brands Power of our Platform Leverage our omni capabilities and scaled operations, and extend our engineered approach to cost and growth Power of our Portfolio Extend customer reach across every age, body and occasion
Slide 9: Gap Inc. has the power to deliver our strategy
Gap Inc. has the power to deliver our strategy ENDURING LEAN & BRAND POWER CUSTOMER OMNI-EXPERIENCE PRODUCT LOVE ADVANTAGED TEAM & VALUES RELATIONSHIPS OPERATIONS
Slide 10: We grow purpose-led, billion-dollar lifestyle brands
We grow purpose-led, billion-dollar lifestyle brands WE BELIEVE IN THE MODERN AMERICAN DESIGNED FOR THE POWER DEMOCRACY OF STYLE OPTIMISM ADVENTURES NEAR & FAR OF SHE
Slide 11: Improving Value by Turning Customers into Lifetime Loyalists
Improving Value by Turning Customers into Lifetime Loyalists OVER MILLION ACTIVE40 LOYALTY MEMBERS (1) 3X more likely 3X more likely to shop Spend 2X more annually (2) to shop across channels (2) multiple brands (2) (1) Defined as loyalty members who have made a purchase in the past 12 months, inclu
Slide 12: We have Omni-Strength in North America
We have Omni-Strength in North America • Less than 20% of revenue generated from indoor malls • Over 90% of net sales generated in North America and partnering to amplify our reach internationally BRAND C HANNE L REGION ■ Old Navy 53% ■ (1) Strip & Lifestyle Centers 40% ■ U.S. 84% ■ Gap 26% ■ Online
Slide 13: Rationalizing our North America Fleet
Rationalizing our North America Fleet • Expect to complete ~90% of the 350 N.A. Gap and Banana Republic planned store closures by the end of FY22 NORTH AM ERIC A STORE C OUNT Banana Republic Gap 121 6 1027 966 ~906 ~866 2019 2020 2021 2022E 2023E
Slide 14: Commitment to Environmental, Social & Governance Performance
Commitment to Environmental, Social & Governance Performance ENVIRONMENT SOCIAL GOVERNANCE 37% 13.5K+ 5 of 11 youth participated in This of our electricity for owned Way ONward; more than Directors and operated facilities in halfway to the goal of 20K are women 2021 was renewable participants by 202