Gap, Inc. (the) · NYSE:GAP

Gap, Inc. (the) — Q2 2018 Earnings Presentation

10 slides from Gap, Inc. (the)'s earnings presentation, Aug 23, 2018

  1. Slide 1: Gap Inc. Fiscal 2018 Second Quarter Earnings Results

    GAP INC. FISCAL 2018 SECOND QUARTER EARNINGS RESULTS ART PECK PRESIDENT & CHIEF EXECUTIVE OFFICER TERI LIST-STOLL EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER

  2. Slide 2: Disclosure Statement: Forward Looking Statements

    DISCLOSURE STATEMENT 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 historical are forward-looking statements.

  3. Slide 3: Q2 2018 Highlights: Gap Inc. Comp Sales

    Q2 2018 HIGHLIGHTS: GAP INC. COMP SALES 1 Year Comps 2 Year Comps 7% 7% 5% 5% 3% 3% 3% 2% 2% 3% 2% 1% 1% 1% 0% -1% -2% -3% -4% -5% -6% Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 7 consecutive quarters of positive comparable sales 3

  4. Slide 4: Q2 2018: U.S. Stores Traffic Trends

    Q2 2018: U.S. STORES TRAFFIC TRENDS Q3’17 Q4’17 Q1’18 Q2’18  +  _  +  +  +  _  _  _ : Beat to industry traffic : Miss to industry traffic + : Positive traffic 4

  5. Slide 5: Strength in Online Sales

    STRENGTH IN ONLINE SALES $3.5B $3.5B On track to reach over $3.5 billion in online sales in 2018. $3.0B $2.5B $2.0B FY 2016 FY 2017 FY 2018 Gap Inc. Annual Online Sales 5

  6. Slide 6: Q2 P&L Summary

    Q2 P&L SUMMARY IN MILLIONS Q2 2018 Without Q2 2018 Without Presentation Presentation Q2 2017 Q2 2018 Changes from ASC Changes from ASC Adjusted(1) 606 vs. Q2 2017 606 Adjusted NET SALES $4,085 $3,946 $3,799 +4% COMP 2% 2% 1% GROSS PROFIT $1,627 $1,532 $1,479 +4% % 39.8% 38.8% 38.9% (10bps) MERCHANDI

  7. Slide 7: Q2 2018: Presentation Changes from ASC 606

    Q2 2018: PRESENTATION CHANGES FROM ASC 606 IN MILLIONS 13 WEEKS ENDED AUGUST 4, 2018 BALANCES WITHOUT RECLASSIFICATION AS REPORTED PRESENTATION S(1) CHANGES from ASC 606(2) NET SALES $4,085 $(139) $3,946 COST OF GOODS SOLD AND OCCUPANCY EXPENSES 2,458 (44) 2,414 GROSS PROFIT 1,627 (95) 1,532 OPERATI

  8. Slide 8: Balanced Growth Strategy

    BALANCED GROWTH STRATEGY Focus on leveraging productivity initiatives to fund investments to support improved profitability and long term growth FIRST HALF 2018 SECOND HALF 2018 New Initiatives: benefits from New Initiatives: launched first half launches BOPIS, BRIGHT, In-Stock, On Shelf, and Old Na

  9. Slide 9: Fiscal 2018 Outlook as of August 23, 2018

    FISCAL 2018 OUTLOOK AS OF AUGUST 23, 2018 Full Fiscal Year 2018 Reported Diluted Earnings per Share $2.55 - $2.70 Comp Sales Flat to up slightly Net Company-Operated Store Openings About 25 Capital Expenditures About $800 million Effective Tax Rate About 26%(1) Share Repurchases About $400 (1)millio

  10. Slide 10: BANANA REPUBLIC

    BANANA REPUBLIC Boo navy J @ATHLETA NTERMIX Gap Ine.

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