11 slides from Gap, Inc. (the)'s earnings presentation, Nov 24, 2020
Slide 1: Gap Inc. Fiscal 2020 Third Quarter Earnings Results
Gap Inc. Fiscal 2020 Sonia Syngal CHIEF EXECUTIVE OFFICER Katrina O’Connell CHIEF FINANCIAL OFFICER THIRD 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 With the holiday season upon us, we feel prepared to welcome our customers no matter how they choose to shop with us. We have made investments to deliver standout moments across our omni experiences - whether it's on mobile, safely in-store, or through one of our new capabilit
Slide 4: Power Plan 2023
Power Plan 2023 Power of our Brands Grow four purpose-led, billion-dollar lifestyle brands Power of our Portfolio Extend our customer reach across every age, body and occasion through our collective power Power of our Platform Leverage our omni capabilities and scaled operations and extend our engin
Slide 5: Financial Highlights
Q3 2020 Financial Highlights • Comparable sales up 5% • Net sales flat year-over-year • 61% increase in online net sales year-over-year • Ended the quarter with $2.6 billion in cash, cash equivalents and short- term investments 5
Slide 6: P&L Summary
Q3 2020 P&L Summary Q3 2020 Q3 Q3 vs. ($ Millions) 2020 2019 Q3 2019 Net Sales $3,994 $3,998 (0%) Gross Profit $1,620 $1,559 +4% % of Sales 40.6% 39.0% +160 bps Operating Expenses $1,445 $1,338 +8% % of Sales 36.2% 33.5% (270 bps) Operating Income $175 $221 (21%) % of Sales 4.4% 5.5% (110 bps) Net I
Slide 7: Comparable Sales Growth
Q3 2020 Comparable Sales Growth +5% +17% (5%) (30%) +37% 7
Slide 8: Revenue Breakdown
Q3 2020 Revenue Breakdown • Higher-margin Old Navy and Athleta are 63% of company sales and on a path to 70% by 2023 • Highly-attractive online, strip, and street locations are ~80% of company sales • >90% of company sales are in North America BRAND C HANNE L REGION ■ Old Navy 56% ■ Online 40% ■ U.S
Slide 9: Delivering an omni-experience and extending our reach
Delivering an omni-experience and extending our reach Our leading omni-channel platform is allowing our customers to shop safely and seamlessly with us from anywhere 3.4 MILLION new customers acquired through our online channel in Q3 2020, representing +145% year-over-year growth 56% INCREASE in net
Slide 10: Rationalizing Our Store Fleet
Rationalizing Our Store Fleet Expect ~225 Gap and Banana Republic net store closures globally in 2020 ANNUAL COMPARISON Q3 YEAR-OVER-YEAR COMPARISON Gap Banana Republic Gap Banana Republic 1843 1822 1759 ~1534 1593 2018 2019 2020E Q3 2019 Q3 2020 10
Slide 11: 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 11