11 slides from Gap, Inc. (the)'s earnings presentation, Aug 27, 2020
Slide 1: Gap Inc. Fiscal 2020 Second Quarter Earnings Results
Gap Inc. Fiscal 2020 Sonia Syngal Katrina O’Connell CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER SECOND 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: Statement from the CEO
Statement from the CEO Our strong performance in the second quarter reflects the customer response to our brands, products and experiences, particularly as we’ve rapidly adapted to the changing environment. We nearly doubled our e-commerce business, with approximately 50% online penetration, demonst
Slide 4: Financial Highlights
Q2 2020 Financial Highlights • Comparable sales up 13% • Net sales down 18% year-over-year • 95% increase in online net sales year-over-year • Ended the quarter with $2.2 billion in cash and cash equivalents 4
Slide 5: P&L Summary
Q2 2020 P&L Summary Q2 2020 Q2 Q2 vs. ($ Millions) 2020 2019 Q2 2019 Net Sales $3,275 $4,005 (18%) Gross Profit $1,149 $1,556 (26%) % of Sales 35.1% 38.9% (380 bps) Merchandise Margin B/(W) LY (270 bps) ROD % of Sales B/(W) LY (110 bps) Operating Expenses $1,076 $1,274 (16%) % of Sales 32.9% 31.8% (
Slide 6: Online Sales Growth
Q2 2020 Online Sales Growth (Year-Over-Year) 95% 136% 75% 26% 74% 6
Slide 7: Analyzing Our Revenue
Q2 2020 Analyzing Our Revenue BRAND C HANNE L ( 1 ) REGION ■ Old Navy 57% ■ Online 50% ■ U.S. 85% ■ Gap 24% ■ Strip/Street 35% ■ Canada 7% ■ Banana Republic 9% ■ Mall 10% ■ Asia 5% ■ Athleta 8% ■ Other 5% ■ Europe 2% ■ Other 2% ■ Other 1% Note: All data based on Q2 2020 net sales. 7 (1) Channel data
Slide 8: Connecting With Customers During Crisis and Beyond
Connecting With Customers During Crisis and Beyond Our leading omni-channel platform is allowing our customers to seamlessly shop with us from anywhere 3.5 MILLION new customers acquired through our online channel, representing >165% GROWTH in new online customer acquisition year-over-year in Q2 202
Slide 9: Significant Operating Cash Flow Generation
Significant Operating Cash Flow Generation >$1B in annual cash from operations for 10+ years $1.7B $1.6B $1.4B $1.4B $1.4B 2015 2016 2017 2018 2019 9
Slide 10: Rationalizing Our Store Fleet
Rationalizing Our Store Fleet Expect over 225 Gap and Banana Republic net store closures globally in 2020 Gap Banana Republic 1843 1759 1643 2018 2019 Q2 2020 2020E 10
Slide 11: Looking Ahead…
Looking Ahead… Well positioned to gain share Harness the Execute on Leverage our power of brands initiatives to scaled and Lead through our and enviable streamline advantaged values at a time customer file to operating model omni-capabilities when trust drive loyalty, and rationalize across our stor