Gap, owner of apparel brands Old Navy, Gap, Banana Republic and Athleta, has announced a 5% increase in net sales, reaching $3.72bn in the second quarter (Q2) of fiscal year 2024 (FY24), compared to $3.54bn in Q2 FY23.
The company registered year-on-year comparable sales growth of 3%.
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During the quarter ending 3 August 2024, store sales grew 4% from the previous year and online sales, representing 33% of total net sales, rose by 7% compared to Q2 FY23.
Gap’s net income soared to $206m in Q2 FY24, a significant increase from $117m in the corresponding period the previous year.
Its diluted earnings per share have risen to $0.54 in Q2 FY24 from $0.32 in the same quarter of FY23.
Its operating income has also experienced a substantial rise from $106m in Q2 FY23 to $293m in Q2 FY24, achieving an operating margin of 7.9%.
The company’s gross margin improved by 500 basis points to 42.6% over the quarter compared to the previous year.
Gap recorded operating expenses of $1.29bn in Q2 FY24, a slight increase from $1.22bn in Q2 FY23.
Gross profit also climbed to $1.58bn, up from $1.33bn in the same quarter of the previous fiscal year.
The company’s global presence is marked by 3,568 store locations across 40 countries, 2,541 company-operated.
During the 26 weeks ended 3 August 2024, net sales were $7.108bn, gross profit was $2,98bn and net income was $364m.
Gap president and CEO Richard Dickson said: “Gap delivered another successful quarter, exceeding financial expectations and gaining market share for the sixth consecutive quarter. We are in a stronger position across key metrics that matter – including net sales, margins, and our cash position – and we are making consistent progress in the reinvigoration of our brands.”
Gap anticipates a slight growth in net sales on a 52-week basis for the full year 2024 and expects operating income to grow in the mid to high 50% range.
