Gap Inc. Files Q1 2024 10-Q Report
Ticker: GAP · Form: 10-Q · Filed: May 31, 2024 · CIK: 39911
Sentiment: neutral
Topics: 10-Q, financials, retail
TL;DR
GAP Q1 2024 10-Q filed. Financials and ops details out.
AI Summary
Gap Inc. filed its 10-Q for the period ending May 4, 2024. The filing covers financial performance and operational details for the first quarter of fiscal year 2024. Key financial data and disclosures relevant to investors are presented within this report.
Why It Matters
This 10-Q filing provides investors with the official financial results and operational updates for Gap Inc. during the first quarter of fiscal year 2024, enabling informed investment decisions.
Risk Assessment
Risk Level: medium — 10-Q filings are standard disclosures for public companies, but the specific financial performance and any disclosed risks within this report could impact investor sentiment.
Key Players & Entities
- GAP INC (company) — Filer
- 20240504 (date) — Reporting period end date
- 0000039911-24-000128 (other) — Accession Number
- TWO FOLSOM STREET (address) — Business and Mail Address
- SAN FRANCISCO (location) — City for Business and Mail Address
- DE (location) — State of Incorporation
FAQ
What is the reporting period for this 10-Q filing?
The reporting period for this 10-Q filing is May 4, 2024.
What is the company's ticker symbol?
The ticker symbol is not explicitly stated in the provided header information, but the company is Gap Inc.
What is the company's primary business address?
The company's primary business address is Two Folsom Street, San Francisco, CA 94105.
What is the SEC file number for Gap Inc.?
The SEC file number for Gap Inc. is 001-07562.
What is the fiscal year end for Gap Inc.?
The fiscal year end for Gap Inc. is February 01.
Filing Stats: 4,733 words · 19 min read · ~16 pages · Grade level 18.9 · Accepted 2024-05-31 11:36:07
Key Financial Figures
- $0.05 — ange on which registered Common Stock, $0.05 par value GPS The New York Stock Exchan
Filing Documents
- gps-20240504.htm (10-Q) — 805KB
- exhibit104-gapxamendmentno.htm (EX-10.4) — 1689KB
- exhibit311q12024.htm (EX-31.1) — 11KB
- exhibit312q12024.htm (EX-31.2) — 11KB
- exhibit321q12024.htm (EX-32.1) — 5KB
- exhibit322q12024.htm (EX-32.2) — 5KB
- 0000039911-24-000128.txt ( ) — 6986KB
- gps-20240504.xsd (EX-101.SCH) — 38KB
- gps-20240504_cal.xml (EX-101.CAL) — 47KB
- gps-20240504_def.xml (EX-101.DEF) — 256KB
- gps-20240504_lab.xml (EX-101.LAB) — 501KB
- gps-20240504_pre.xml (EX-101.PRE) — 371KB
- gps-20240504_htm.xml (XML) — 627KB
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains 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. Words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," "project," and similar expressions also identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding the following: the potential impact of global economic conditions on the assumptions and estimates used when preparing the Condensed Consolidated Financial Statements; the impact of recent accounting pronouncements; the timing of revenue recognition of upfront payments related to our credit card program agreements with Barclays and Mastercard; the timing of recognition in income of unrealized gains and losses from designated cash flow hedges; the impact of losses due to indemnification obligations on the Condensed Consolidated Financial Statements; the outcome of proceedings, lawsuits, disputes, and claims, including the impact of such actions on the Condensed Consolidated Financial Statements and our financial results; meeting the closing conditions to transfer the Gap Taiwan operations; our arrangements with third parties to operate stores and websites selling apparel and related products under our brand names; maintaining and building upon financial and operational rigor, through an optimized cost structure and disciplined inventory management; reinvigorating our brands to drive relevance and an engaging omni-channel experience; strengthening and evolving our operating platform with a digital-first mindset to drive scale and efficiency; energizing our culture by attracting and retaining strong talent; continuing to integrate social and environmental sustainability into business practices to support long-term growth; the expected impact of
- FINANCIAL INFORMATION
PART I - FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets as of May 4, 2024, February 3, 2024, and April 29, 2023 1 Condensed Consolidated Statements of Operations for the 13 Weeks Ended May 4, 2024 and April 29, 2023 2 Condensed Consolidated Statements of Comprehensive Income (Loss) for the 13 Weeks Ended May 4, 2024 and April 29, 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the 13 Weeks Ended May 4, 2024 and April 29, 2023 4 Condensed Consolidated Statements of Cash Flows for the 13 Weeks Ended May 4, 2024 and April 29, 2023 5 Notes to Condensed Consolidated Financial Statements 6
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 20
Controls and Procedures
Item 4. Controls and Procedures 21
- OTHER INFORMATION
PART II - OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 22
Risk Factors
Item 1A. Risk Factors 22
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22
Other Information
Item 5. Other Information 22
Exhibits
Item 6. Exhibits 23
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements. THE GAP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ and shares in millions except par value) May 4, 2024 February 3, 2024 April 29, 2023 ASSETS Current assets: Cash and cash equivalents $ 1,532 $ 1,873 $ 1,170 Short-term investments 199 — — Merchandise inventory 1,952 1,995 2,299 Other current assets 514 527 814 Total current assets 4,197 4,395 4,283 Property and equipment, net of accumulated depreciation of $ 4,952 , $ 4,874 , and $ 4,878 2,528 2,566 2,646 Operating lease assets 3,207 3,115 3,123 Other long-term assets 976 968 880 Total assets $ 10,908 $ 11,044 $ 10,932 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,196 $ 1,349 $ 1,199 Accrued expenses and other current liabilities 942 1,108 1,051 Current portion of operating lease liabilities 624 600 658 Income taxes payable 44 39 10 Total current liabilities 2,806 3,096 2,918 Long-term liabilities: Revolving credit facility — — 350 Long-term debt 1,489 1,488 1,487 Long-term operating lease liabilities 3,387 3,353 3,453 Other long-term liabilities 519 512 539 Total long-term liabilities 5,395 5,353 5,829 Commitments and contingencies (see Note 9) Stockholders' equity: Common stock $ 0.05 par value Authorized 2,300 shares for all periods presented; Issued and Outstanding 375 , 372 , and 368 shares 19 19 18 Additional paid-in capital 119 113 47 Retained earnings 2,522 2,420 2,067 Accumulated other comprehensive income 47 43 53 Total stockholders' equity 2,707 2,595 2,185 Total liabilities and stockholders' equity $ 10,908 $ 11,044 $ 10,932 See Accompanying Notes to Condensed Consolidated Financial Statements 1 THE GAP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 13 Weeks Ended ($ and shares in millions except per share amounts) May 4, 2024 April 29, 2023 Net sales $ 3,388 $ 3,276 Cost of goods sold and occupancy expenses 1,991 2,062 Gross profit 1,397 1,214 Operat