Gap, Inc. (the) · NYSE:GAP
Gap, Inc. (the) — The Gap — Q3 2025 Earnings Presentation
29 slides from Gap, Inc. (the)'s earnings presentation, Nov 20, 2025
Slide 1: Q3 Fiscal 2025 Third Quarter Results
Q3 Fiscal 2025 THIRD QUARTER RESULTS November 20, 2025
Slide 2: Forward Looking Statements / Non-GAAP Financial Measures
Forward Looking Statements / Non -GAAP Financial Measures FORWARD LOOKING STATEMENTS These materials and related earnings press release and conference call contain forward -looking statements within the “safe harbo r" provisions of the Private Securities Litigation Reform Act of 1995. All statements
Slide 3: Strategic Priorities
Strategic Priorities Maintain Financial Reinvigorate Strengthen Energize & Operational Our Brands Our Platform Our Culture Rigor To elevate our To drive both relevance By building and To fuel creativity and performance, improve and revenue, inspired sharpening our connectivity while execution consis
Slide 4: 2025 Third Quarter Highlights
2025 Third Quarter Highlights • Results exceeded our expectations for net sales and gross margin • Net sales of $3.9 billion, up 3% year -over-year • Comparable sales up 5%, the 7th consecutive quarter of positive comps • Delivered gross margin of 42.4% and operating margin of 8.5% • Strengthened ba
Slide 5: Q3 2025 Snapshot Of Key Financial Metrics
Q3 2025 NET SALES COMPS GROSS MARGIN Snapshot Of Key $3.9B +5% 42.4% +3% VS LY VS +1% LY -30 BPS VS LY Financial Metrics OPEX% OP MARGIN EPS 33.9% 8.5% $0.62 -50 BPS VS LY -80 BPS VS LY VS $0.72 LY
Slide 6: Comparable Sales Net Sales
3% +5% NET SALES COMPARABLE GROWTH (1) SALES 7 CONSECUTIVE QUARTERS OF POSITIVE COMPARABLE SALES 1. Represents third quarter fiscal 2025 year -over-year net sales growth.
Slide 7: Comparable Sales Net Sales
5% +6% NET SALES COMPARABLE GROWTH (1) SALES #1 SPECIALTY APPAREL BRAND AND RETAILER IN THE U.S. (2) 1. Represents third quarter fiscal 2025 year -over-year net sales growth. 2. Source: Circana, U.S. Apparel Market, R12M ending October 2025.
Slide 8: Comparable Sales Net Sales
6% +7% NET SALES COMPARABLE GROWTH (1) SALES 8 CONSECUTIVE QUARTERS OF POSITIVE COMPARABLE SALES 1. Represents third quarter fiscal 2025 year -over-year net sales growth.
Slide 9: Net Sales Growth Comparable
(1%) +4% NET SALES COMPARABLE GROWTH (1) SALES Foundational work is resonating with consumers and drove the second consecutive quarter of strong results 1. Represents third quarter fiscal 2025 year -over-year net sales growth.
Slide 10: Net Sales Growth Comparable
(11%) (11%) NET SALES COMPARABLE GROWTH (1) SALES Focused on fixing the fundamentals while continuing to reset the brand for the long term 1. Represents third quarter fiscal 2025 year -over-year net sales growth.
Slide 11: Q3 2025 Financial Position
Q3 2025 Financial Position CASH, CASH EQUIVALENTS, & SHORT -TERM INVESTMENTS: • $ 2.5 billion, up 13% versus last year ENDING INVENTORY: • Increased 5% versus last year primarily as a result of higher cost due to tariffs NET CASH FROM OPERATING ACTIVITIES: • $ 607 million year -to-date CAPITAL STRUC
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities 1) INVEST IN BUSINESS • Targeting FY 2025 CapEx of ~$500 -550 million 2) ATTRACTIVE DIVIDEND • Returned $ 62 million to shareholders in dividends in Q3 2025 ; $185 million year -to-date • Board of Directors approved Q4 2025 dividend of $0.165 per share 3) SHARE REPURCHA
Slide 13: Commitment to Sustainability Performance
Commitment to Sustainability Performance BRIDGING THE BRIDGING THE BRIDGING THE EQUITY GAP CLIMATE GAP OPPORTUNITY GAP 85% Net Zero Top 10 of strategic factories had at least 50% by 2050 target approved in retail ranking by The American of women workers enroll in P.A.C.E. or by the Science Based Opp
Slide 14: Fiscal 2025 Outlook
Fiscal 2025 Outlook The below fiscal 2025 outlook includes the estimated effect of tariffs . METRIC FULL YEAR 2025 OUTLOOK Net sales 1.7% to 2.0% growth Approximately 7.2% including an estimated Operating margin 100-110 bps of net tariff impact Net interest income Approximately $20 million Effective
Slide 15: Appendix
Appendix APPENDIX SLIDES OPEN SUPPLEMENTAL MATERIALS
Slide 16: Supplemental Materials Index
I. Statement of Operations Highlights II. Balance Sheet Highlights III. Cash Flow Statement Highlights IV. Other Metrics V. Comparable Sales by Global Brand VI. Net Sales by Brand and Geography NOTE: All dollar, share, and square footage amounts are shown in millions, with the exception of per share
Slide 17: I. Statement of Operations Highlights
I. Statement of Operations Highlights 1. Earnings per share are computed individually for each of the periods presented; therefore, the sum of the earnings per share amounts for the quarters may not equal the total for the years. 2. The fiscal year ended February 3, 2024 (FY 2023) consisted of 53 we
Slide 18: I. Statement of Operations Highlights (Adjusted)
I. Statement of Operations Highlights (Adjusted) 1. There are no adjusted metrics during these periods. Please refer to the Statement of Operations Highlights for GAAP metrics. 2. FY 2023 amounts primarily related to employee -related costs and consulting costs related to our previously announced ac
Slide 19: II. Balance Sheet Highlights
II. Balance Sheet Highlights
Slide 20: III. Cash Flow Statement Highlights
III. Cash Flow Statement Highlights 1. Please refer to each respective period’s earnings press release for further information on the total cash, cash equivalents, and restricted cash.
Slide 21: IV. Other Metrics
IV. Other Metrics 1. Online sales primarily include sales originating from our online channel including those that are picked up or shipped from s tores and net sales from revenue -generating strategic initiatives. 2. Operating lease cost is included within Occupancy expenses disclosed within the Se
Slide 22: V. Historical Comparable Sales by Global Brand
V. Historical Comparable Sales by Global Brand Comp sales include the results of Company -operated stores and sales through online channels. The calculation of Gap Inc. Comp sales excludes the results of the franchise and licensing business. A store is included in the Comp sales calculations when it
Slide 23: VI. Net Sales by Brand and Geography
VI. Net Sales by Brand and Geography 1. U.S. includes the United States and Puerto Rico. 2. Primarily consists of net sales from revenue -generating strategic initiatives.
Slide 24: Net Sales by Brand and Geography, Fiscal Year 2024
IV. Q4'24 $ millions Old Navy Global Gap Global Banana Republic Global Athleta Global Other (2) Total Fiscal Year U.S. Canada (1) $ 2,043 154 $ 756 88 $ 479 46 $ 385 10 $ 16 - $ 3,679 298 2024 Other regions Total $ 15 2,212 $ 136 980 $ 20 545 $ 396 1 $ 16 - $ 172 4,149 NET SALES BY BRAND AND GEOGRAP
Slide 25: Net Sales by Brand and Geography, Fiscal Year 2023
IV. Q4'23 (1) Banana Old Navy Republic Athleta $ m illions Global Gap Global Global Global Other (3) Total Fiscal Year U.S. Canada (2) $ 2,107 171 $ 768 99 $ 494 48 $ 407 12 $ 17 - $ 3,793 330 2023 Other regions Total $ 10 2,288 $ 140 1,007 $ 25 567 $ 419 - $ 17 - $ 175 4,298 NET SALES BY BRAND AND
Slide 26: Net Sales by Brand and Geography, Fiscal Year 2022
IV. Q4'22 Banana Old Navy Republic Athleta $ m illions Global Gap Global Global Global Other (2) Total Fiscal Year U.S. (1) $ 1,982 $ 709 $ 505 $ 423 $ 2 $ 3,621 Canada 165 91 49 10 - 315 Europe - 35 1 1 - 37 2022 Asia Other regions 19 - 181 45 17 6 - 2 - - 198 72 Total $ 2,166 $ 1,061 $ 578 $ 436 $
Slide 27: Net Sales by Brand and Geography, Fiscal Year 2021
IV. Q4'21 Banana Old Navy Republic $ m illions Global Gap Global Global Athleta (2) Other (3) Total Fiscal Year U.S. (1) $ 2,097 $ 761 $ 532 $ 428 $ 2 $ 3,820 Canada 178 100 54 9 - 341 Europe 1 54 2 1 - 58 2021 Asia Other regions 1 30 219 30 21 4 1 - - - 241 65 Total $ 2,307 $ 1,164 $ 613 $ 439 $ 2
Slide 28: Net Sales by Brand and Geography, Fiscal Year 2020
IV. Q4'20 Banana Old Navy Republic $ m illions Global Gap Global Global Other (2) Total Fiscal Year U.S. (1) $ 2,189 $ 704 $ 438 $ 457 $ 3,788 Canada 163 78 40 - $ 281 Europe - 80 2 - $ 82 2020 Asia Other regions 23 - 207 19 20 4 - - $ $ 227 46 Total $ 2,375 $ 1,088 $ 504 $ 457 $ 4,424 NET SALES BY
Slide 29: Thank You
Thank You