Gap, Inc. (the) · NYSE:GAP
Gap, Inc. (the) — Q3 2017 Earnings Presentation
11 slides from Gap, Inc. (the)'s earnings presentation, Nov 17, 2017
Slide 1: Gap Inc. Fiscal 2017 Third Quarter Earnings Results
GAP INC. FISCAL 2017 TERI LIST‐STOLL E X E C U T I V E V I C E P R E S I D E N T & C H I E F F I N A N C I A L O F F I C E R THIRD QUARTER EARNINGS RESULTS ART PECK P R E S I D E N T & C H I E F E X E C U T I V E O F F I C E R Exhibit 99.2
Slide 2: Forward-Looking Statements and Disclosure Statement
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. Forward‐looking statements include statements id
Slide 3: The Gap Inc. Advantage
THE GAP INC. ADVANTAGE • Portfolio of iconic, profitable brands • Ability to meet our customers where they are: online, mobile, in‐store • Leveraging responsive and innovative product creation capabilities to gain market share in loyalty‐driving categories • Scale that drives profitability and growt
Slide 4: Comp and Net Sales
(1) In calculating the net sales change on a constant currency basis, current year foreign exchange rates are applied to both current year and prior year net sales. This is done to enhance the visibility of underlying sales trends, excluding the impact of foreign currency exchange rate fluctuations.
Slide 5: Q3 Gross Margin
Q3 GROSS MARGIN Gross Profit (in billions) $1.53 $1.49 $1.53 $1.49 Merchandise Margin B/(W) LY 0bps 220bps 0bps 200bps ROD % of Sales B/(W) LY 40bps (20bps) 60bps (40bps) 39.7% 39.3% 2017 2016 Reported 39.7% 39.1% 2017 2016 Adjusted(1) (1) Excludes $7 million of credit, net, related to pre‐tax restr
Slide 6: Q3 Operating Expenses
Q3 OPERATING EXPENSES Operating Expenses (in millions) $1,147 $1,104 $1,147 $1,068 29.9% 29.1% 2017 2016 Reported 29.9% 28.1% 2017 2016 Adjusted(1) (1) Excludes $36 million of pre‐tax restructuring charges in 2016. AS A % OF SALES
Slide 7: Q3 Operating Margin
Q3 OPERATING MARGIN 9.8% 10.2% 2017 2016 Reported 9.8% 11.0% 2017 2016 Operating Income (in millions) $378 $389 $378 $418 Adjusted(1) (1) Excludes $29 million of pre‐tax restructuring charges in 2016.
Slide 8: Q3 Net Income
Q3 NET INCOME IN MILLIONS $229 $204 2017 2016 Reported $229 $238 2017 2016 EPS $0.58 $0.51 $0.58 $0.60 EPS Growth YoY 14% (16%) (3%) (5%) Adjusted EPS Growth Excluding Estimated YoY Impact of FX vs. Prior Year (2) 0% 0% Adjusted(1) (1) Adjusted figures exclude impact of restructuring charges of $29
Slide 9: Other Third Quarter 2017 Metrics
OTHER THIRD QUARTER 2017 METRICS • Year‐to‐date capital expenditures totaled $463 million • Ended the quarter with $1.35 billion in cash and cash equivalents • Year‐to‐date distributions of approximately $572 million to shareholders through share repurchases and dividends
Slide 10: Fiscal 2017 Outlook
FISCAL 2017 OUTLOOK Full Fiscal Year 2017 Reported Diluted Earnings per Share $2.18 ‐ $2.22 Up from previous guidance of: $2.12 ‐ $2.20 Adjusted Diluted Earnings per Share $2.08 ‐ $2.12 (1) Up from previous guidance of: $2.02 – $2.10 (1) Comp Sales Up low‐single‐digits Up from previous guidance of:
Slide 11: BANANA REPUBLIC
BANANA REPUBLIC @ATHLETA INTERMIX Gap Inc.