Gap Inc. Files Q3 2024 10-Q Report

TL;DR

Gap Inc. 10-Q filed Nov 26, 2024, covering Q3 2024. Financials out.

AI Summary

Gap Inc. filed its 10-Q for the period ending November 2, 2024, reporting on its financial performance. The company's fiscal year ends on February 1st, and this filing covers the third quarter of 2024. Key financial data and operational details are provided for investors and stakeholders.

Why It Matters

This filing provides crucial financial insights into Gap Inc.'s performance, impacting investor decisions and market perception of the retail company.

Risk Assessment

Risk Level: medium — As a public company filing a quarterly report, there are inherent risks associated with financial performance and market conditions that could impact investors.

Key Numbers

• 2024-11-02 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-11-26 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 001-07562 — SEC File Number (The SEC's assigned file number for Gap Inc.)

Key Players & Entities

• GAP INC (company) — Filer of the 10-Q report
• 0000039911-24-000202 (other) — Accession number for the filing
• November 2, 2024 (date) — End of the reporting period
• February 1 (date) — Fiscal year end
• San Francisco, CA (location) — Company headquarters

FAQ

Key Financial Figures

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

Filing Documents

• gap-20241102.htm (10-Q) — 1018KB
• exhibit311q32024.htm (EX-31.1) — 11KB
• exhibit312q32024.htm (EX-31.2) — 11KB
• exhibit321q32024.htm (EX-32.1) — 5KB
• exhibit322q32024.htm (EX-32.2) — 5KB
• 0000039911-24-000202.txt ( ) — 5645KB
• gap-20241102.xsd (EX-101.SCH) — 37KB
• gap-20241102_cal.xml (EX-101.CAL) — 52KB
• gap-20241102_def.xml (EX-101.DEF) — 249KB
• gap-20241102_lab.xml (EX-101.LAB) — 510KB
• gap-20241102_pre.xml (EX-101.PRE) — 369KB
• gap-20241102_htm.xml (XML) — 844KB

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 November 2, 2024, February 3, 2024, and October 28, 2023 1 Condensed Consolidated Statements of Operations for the 13 Weeks and 39 Weeks Ended November 2, 2024 and October 28, 2023 2 Condensed Consolidated Statements of Comprehensive Income for the 13 Weeks and 39 Weeks Ended November 2, 2024 and October 28, 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the 13 Weeks and 39 Weeks Ended November 2, 2024 and October 28, 2023 4 Condensed Consolidated Statements of Cash Flows for the 39 Weeks Ended November 2, 2024 and October 28, 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) November 2, 2024 February 3, 2024 October 28, 2023 ASSETS Current assets: Cash and cash equivalents $ 1,969 $ 1,873 $ 1,351 Short-term investments 250 — — Merchandise inventory 2,331 1,995 2,377 Other current assets 580 527 646 Total current assets 5,130 4,395 4,374 Property and equipment, net of accumulated depreciation of $ 4,985 , $ 4,874 , and $ 4,890 2,546 2,566 2,552 Operating lease assets 3,217 3,115 3,200 Other long-term assets 960 968 926 Total assets $ 11,853 $ 11,044 $ 11,052 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,523 $ 1,349 $ 1,433 Accrued expenses and other current liabilities 1,135 1,108 1,078 Current portion of operating lease liabilities 617 600 604 Income taxes payable 50 39 24 Total current liabilities 3,325 3,096 3,139 Long-term liabilities: Long-term debt 1,489 1,488 1,488 Long-term operating lease liabilities 3,360 3,353 3,456 Other long-term liabilities 544 512 509 Total long-term liabilities 5,393 5,353 5,453 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 377 , 372 , and 371 shares 19 19 18 Additional paid-in capital 177 113 93 Retained earnings 2,889 2,420 2,291 Accumulated other comprehensive income 50 43 58 Total stockholders' equity 3,135 2,595 2,460 Total liabilities and stockholders' equity $ 11,853 $ 11,044 $ 11,052 See Accompanying Notes to Condensed Consolidated Financial Statements 1 THE GAP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 13 Weeks Ended 39 Weeks Ended ($ and shares in millions except per share amounts) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Net sales $ 3,829 $ 3,767 $ 10,937 $ 10,591 Cost of goods sold and occupancy expen

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View this 10-Q filing on SEC EDGAR