Gap Inc. Q2 2024 10-Q Filing

TL;DR

**GAP Q2 10-Q FILED: Financials for period ending Aug 3, 2024 are in.**

AI Summary

Gap Inc. filed its 10-Q for the period ending August 3, 2024. The filing covers the second quarter of fiscal year 2024. Key financial data and operational details for this period are presented, including balance sheet information and changes in equity.

Why It Matters

This filing provides investors with the latest financial performance and position of Gap Inc., crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: medium — As a retail company, Gap Inc. is subject to market trends, consumer spending, and competitive pressures, which inherently carry medium risk.

Key Numbers

• 2024-08-03 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-08-30 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)
• 2024 Q2 — Fiscal Quarter (Specifies the fiscal quarter covered by the report.)

Key Players & Entities

• GAP INC (company) — Filer of the 10-Q
• August 3, 2024 (date) — End of reporting period
• 20240803 (date) — Filing date
• 001-07562 (company) — SEC File Number

FAQ

Key Financial Figures

• $0.05 — ange on which registered Common Stock, $0.05 par value GAP The New York Stock Excha

Filing Documents

• gps-20240803.htm (10-Q) — 1012KB
• exhibit31-restatedcertific.htm (EX-3.1) — 80KB
• exhibit102-chrisblakesleex.htm (EX-10.2) — 8KB
• exhibit311q22024.htm (EX-31.1) — 11KB
• exhibit312q22024.htm (EX-31.2) — 11KB
• exhibit321q22024.htm (EX-32.1) — 5KB
• exhibit322q22024.htm (EX-32.2) — 5KB
• 0000039911-24-000179.txt ( ) — 5731KB
• gps-20240803.xsd (EX-101.SCH) — 36KB
• gps-20240803_cal.xml (EX-101.CAL) — 52KB
• gps-20240803_def.xml (EX-101.DEF) — 248KB
• gps-20240803_lab.xml (EX-101.LAB) — 507KB
• gps-20240803_pre.xml (EX-101.PRE) — 371KB
• gps-20240803_htm.xml (XML) — 837KB

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 agreement; 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 the Pillar Two rules on our fi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets as of August 3, 2024, February 3, 2024, and July 29, 2023 1 Condensed Consolidated Statements of Operations for the 13 Weeks and 26 Weeks Ended August 3, 2024 and July 29, 2023 2 Condensed Consolidated Statements of Comprehensive Income for the 13 Weeks and 26 Weeks Ended August 3, 2024 and July 29, 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the 13 Weeks and 26 Weeks Ended August 3, 2024 and July 29, 2023 4 Condensed Consolidated Statements of Cash Flows for the 26 Weeks Ended August 3, 2024 and July 29, 2023 6 Notes to Condensed Consolidated Financial Statements 7

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 15

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 21

Controls and Procedures

Item 4. Controls and Procedures 22

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 23

Risk Factors

Item 1A. Risk Factors 23

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23

Other Information

Item 5. Other Information 23

Exhibits

Item 6. Exhibits 24

– 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) August 3, 2024 February 3, 2024 July 29, 2023 ASSETS Current assets: Cash and cash equivalents $ 1,900 $ 1,873 $ 1,350 Short-term investments 246 — — Merchandise inventory 2,107 1,995 2,226 Other current assets 556 527 663 Total current assets 4,809 4,395 4,239 Property and equipment, net of accumulated depreciation of $ 4,926 , $ 4,874 , and $ 4,841 2,525 2,566 2,595 Operating lease assets 3,185 3,115 3,113 Other long-term assets 990 968 903 Total assets $ 11,509 $ 11,044 $ 10,850 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,522 $ 1,349 $ 1,406 Accrued expenses and other current liabilities 1,029 1,108 1,007 Current portion of operating lease liabilities 613 600 578 Income taxes payable 60 39 16 Total current liabilities 3,224 3,096 3,007 Long-term liabilities: Revolving credit facility — — 150 Long-term debt 1,489 1,488 1,487 Long-term operating lease liabilities 3,357 3,353 3,433 Other long-term liabilities 538 512 510 Total long-term liabilities 5,384 5,353 5,580 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 376 , 372 , and 369 shares 19 19 18 Additional paid-in capital 159 113 73 Retained earnings 2,672 2,420 2,128 Accumulated other comprehensive income 51 43 44 Total stockholders' equity 2,901 2,595 2,263 Total liabilities and stockholders' equity $ 11,509 $ 11,044 $ 10,850 See Accompanying Notes to Condensed Consolidated Financial Statements 1 THE GAP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 13 Weeks Ended 26 Weeks Ended ($ and shares in millions except per share amounts) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Net sales $ 3,720 $ 3,548 $ 7,108 $ 6,824 Cost of goods sold an

View Full Filing

View this 10-Q filing on SEC EDGAR