Gap, Inc. (the) · NYSE:GAP
Gap, Inc. (the) — Q4 2022 Earnings Presentation
13 slides from Gap, Inc. (the)'s earnings presentation, Mar 9, 2023
Slide 1: Gap Inc. Fiscal 2022 Fourth Quarter Earnings Results
Gap Inc. Fiscal 2022 Bob Martin Katrina O’Connell Haio Barbeito INTERIM CHIEF CHIEF FINANCIAL OLD NAVY CHIEF EXECUTIVE OFFICER OFFICER EXECUTIVE OFFICER FOURTH 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: Our purpose-led, billion-dollar lifestyle brands
Our purpose-led, billion-dollar lifestyle brands WE BELIEVE IN THE MODERN AMERICAN A SPIRIT THE POWER DEMOCRACY OF STYLE OPTIMISM OF ADVENTURE OF SHE
Slide 4: Net Sales Growth & Comparable Sales
Q4 2022 Net Sales Growth & Comparable Sales N E T: (6%) (6%) (9%) (6%) (1%) CO M P: (5%) (7%) (4%) (3%) (5%)
Slide 5: P&L Summary (REPORTED)
Q4 2022 P&L Summary (REPORTED) UNAUDITED Q4 Q4 Q4 2022 vs. ($ Millions) 2022 2021 (1) Q4 2021 Net Sales $4,243 $4,525 (6%) Comparable Sales (5%) +3% Gross Profit $1,424 $1,523 (7%) % of Sales 33.6% 33.7% (10 bps) Merchandise Margin B/(W) +20 bps ROD % of Sales B/(W) (30 bps) Operating Expenses $1,45
Slide 6: P&L Summary (VS. Q4 2021 ADJUSTED)
Q4 2022 P&L Summary (VS. Q4 2021 ADJUSTED) UNAUDITED Q4 2022 Q4 Q4 vs. ($ Millions) 2022 (1) 2021 Q4 2021 Net Sales $4,243 $4,525 (6%) Comparable Sales (5%) +3% Gross Profit $1,424 $1,523 (7%) % of Sales 33.6% 33.7% (10 bps) Merchandise Margin B/(W) +20 bps ROD % of Sales B/(W) (30 bps) Adjusted Ope
Slide 7: Net Sales Growth & Comparable Sales
FY 2022 Net Sales Growth & Comparable Sales N E T: (6%) (9%) (7%) +7% +2% CO M P: (7%) (12%) (4%) +9% (5%)
Slide 8: P&L Summary (REPORTED)
FY 2022 P&L Summary (REPORTED) UNAUDITED FY FY FY 2022 vs. ($ Millions) 2022 (1) 2021 (2) FY 2021 Net Sales $15,616 $16,670 (6%) Comparable Sales (7%) +6% Gross Profit $5,359 $6,637 (19%) % of Sales 34.3% 39.8% (550 bps) Merchandise Margin B/(W) (500 bps) ROD % of Sales B/(W) (50 bps) Operating Expe
Slide 9: P&L Summary (ADJUSTED)
FY 2022 P&L Summary (ADJUSTED) UNAUDITED FY 2022 FY FY vs. ($ Millions) 2022 2021 FY 2021 Net Sales $15,616 $16,670 (6%) Comparable Sales (7%) +6% Adjusted Gross Profit $5,470 (1) $6,628 (1) (17%) % of Sales 35.0% (1) 39.8% (1) (480 bps) Merchandise Margin B/(W) (430 bps) ROD % of Sales B/(W) (50 bp
Slide 10: 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 11: 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. 85% ■ Gap 24% ■ Online
Slide 12: Rationalizing our North America Fleet
Rationalizing our North America Fleet • On-track to close 350 N.A. Gap and Banana Republic stores by the end of Fiscal 2023 NORTH AM ERIC A STORE C OUNT Banana Republic Gap 121 6 1027 966 912 ~866 2019 2020 2021 2022 2023E
Slide 13: Commitment to Environmental, Social & Governance Performance
Commitment to Environmental, Social & Governance Performance 1.29 Million+ 15,000+ 2.3 Million+ women and girls reached by youth hired by This Way Onward people reached with improved water P.A.C.E. since 2007 since 2007 access through Women + Water since 2017 A 81% 100% Rating received for CDP Water