15 slides from Gap, Inc. (the)'s earnings presentation, May 26, 2022
Slide 1: Gap Inc. Fiscal 2022 First Quarter Earnings Results
Gap Inc. Fiscal 2022 Sonia Syngal CHIEF EXECUTIVE OFFICER Katrina O’Connell CHIEF FINANCIAL OFFICER FIRST 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: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights • Net sales of $3.5 billion, down 13% y/y; comparable sales down 14%. • Net sales negatively impacted by ~5 pts of headwind related to lapping the benefit of stimulus last year and ~3 pts from divestitures, store closures, and EU partnerships • Gross margin of 31.5%, dow
Slide 4: P&L Summary (Reported)
Q1 2022 P&L Summary (REPORTED) UNAUDITED Q1 Q1 Q1 2022 vs. ($ Millions) 2022 (1) 2021 Q1 2021 Net Sales $3,477 $3,991 (13%) Update format of slide to Comparable Sales (14%) +28% include photo Gross Profit $1,096 $1,630 (33%) % of Sales 31.5% 40.8% (930 bps) Merchandise Margin B/(W) (760 bps) ROD % o
Slide 5: P&L Summary (vs. 2021 Adjusted)
Q1 2022 P&L Summary (vs. 2021 ADJUSTED) UNAUDITED Q1 Q1 Q1 2022 vs. ($ Millions) 2022 (1) 2021 Q1 2021 Net Sales $3,477 $3,991 (13%) Update format of slide to Comparable Sales (14%) +28% include photo Gross Profit $1,096 $1,630 (33%) % of Sales 31.5% 40.8% (930 bps) Merchandise Margin B/(W) (760 bps
Slide 6: Net Sales Growth
Q1 2022 Net Sales Growth (13%) (19%) (11%) +24% +4%
Slide 7: Comparable Sales
Q1 2022 Comparable Sales (14%) (22%) (11%) +27% (7%) NORTH AMERICA COMP: (11%)
Slide 8: Fiscal 2022 Outlook
Q1 2022 Fiscal 2022 Outlook AS OF MAY 26, 2022 Reported Diluted Earnings per Share $0.40 to $0.70 Adjusted Diluted Earnings per Share (1) $0.30 to $0.60 Net Sales Growth Down low to mid-single digits Gross Margin 36.5% to 37.5% Reported Operating Margin 1.8% to 2.8% Adjusted Operating Margin (1) 1.5
Slide 9: Power Plan 2023
Power Plan 2023 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 thr
Slide 10: Gap Inc. has the Power to Deliver Our Strategy
Gap Inc. has the Power to Deliver Our Strategy ENDURING LEAN & ADVANTAGED BRAND POWER CUSTOMER OMNI-EXPERIENCE PRODUCT LOVE TEAM & VALUES OPERATIONS RELATIONSHIPS
Slide 11: 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 12: Improving Value by Turning Customers into Lifetime Loyalists
Improving Value by Turning Customers into Lifetime Loyalists Spend 2X more annually (2) 55+ 3X more likely MILLION to shop across channels (2) members of our integrated loyalty program (1) 2X more likely to shop multiple brands (2) (1) Includes credit card holders. (2) Based on rolling 12-month data
Slide 13: 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 23% ■ Online
Slide 14: Rationalizing our North America Fleet
Rationalizing our North America Fleet • Expect to complete ~85% 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 6 966 ~866 2019 2021 2023E
Slide 15: Commitment to Environmental, Social & Governance Performance
Commitment to Environmental, Social & Governance Performance ENVIRONMENT SOCIAL GOVERNANCE 92% 10K+ 6 of 11 fabrics with PFC-based jobs provided to the next Directors finishes successfully generation of leaders through are women converted or exited This Way ONward; more than halfway to the goal of 2