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Gap sets sights on improving business in 2012
24 Feb '12
5 min read
Comparable sales for the fourth quarter of fiscal year 2011, including the associated comparable online sales, were as follows:
• Gap North America: negative 3 percent versus flat last year
• Banana Republic North America: flat versus positive 2 percent last year
• Old Navy North America: negative 6 percent versus positive 2 percent last year
• International: negative 8 percent versus positive 1 percent last year
Comparable sales for fiscal year 2011, including the associated comparable online sales, were as follows:
• Gap North America: negative 4 percent versus flat last year
• Banana Republic North America: negative 1 percent versus positive 3 percent last year
• Old Navy North America: negative 3 percent versus positive 3 percent last year
• International: negative 7 percent versus positive 2 percent last year
The company expects diluted earnings per share to be in the range of $1.75 - $1.80 for fiscal year 2012.
Depreciation and Amortization
Fiscal year 2011 depreciation and amortization expense, net of amortization of lease incentives, was $506 million. For fiscal year 2012, the company expects depreciation and amortization expense, net of amortization of lease incentives, to be about $475 million.
Operating Expenses Fourth quarter operating expenses were $1.0 billion, or 24.1 percent of net sales. Marketing expenses for the fourth quarter were $166 million. Fiscal year 2011 operating expenses were $3.8 billion, or 26.4 percent of net sales. Marketing expenses for the full year were $548 million, up $32 million compared with last year.
The company expects that operating margin for fiscal year 2012 will be about 10 percent.
The effective tax rate was 37.7 percent for the fourth quarter of fiscal year 2011. The effective tax rate for fiscal year 2011 was 39.2 percent. For fiscal year 2012, the company expects the effective tax rate to be about 39.5 percent. Inventory On a year-over-year basis inventory dollars per store were down 0.8 percent at the end of the fourth quarter of fiscal year 2011.
For fiscal year 2012, the company expects inventory dollars per store at the end of the first quarter to be about flat on a year-over-year basis.
During the fourth quarter of fiscal year 2011, the company repurchased about 4.5 million shares for $83 million. For fiscal year 2011, the company repurchased about 111 million shares for a total of $2.1 billion.
The company paid a dividend of $0.1125 per share during the fourth quarter of fiscal year 2011.
Fiscal year 2011 capital expenditures were $548 million.
For fiscal year 2012, the company expects capital spending to increase about 10 percent to approximately $600 million in support of its outlined strategies.
In fiscal year 2012, the company expects to open about 125 company-operated stores, net of repositions, 55 of which are international. The company expects that it will close about 115 company-operated stores, net of repositions. The closures are weighted towards Gap North America, consistent with the company's previously-stated strategy. Net square footage for company-operated stores is expected to decrease by about 1 percent by the end of fiscal year 2012 compared with the end of fiscal year 2011.
• Gap North America: negative 3 percent versus flat last year
• Banana Republic North America: flat versus positive 2 percent last year
• Old Navy North America: negative 6 percent versus positive 2 percent last year
• International: negative 8 percent versus positive 1 percent last year
Comparable sales for fiscal year 2011, including the associated comparable online sales, were as follows:
• Gap North America: negative 4 percent versus flat last year
• Banana Republic North America: negative 1 percent versus positive 3 percent last year
• Old Navy North America: negative 3 percent versus positive 3 percent last year
• International: negative 7 percent versus positive 2 percent last year
The company expects diluted earnings per share to be in the range of $1.75 - $1.80 for fiscal year 2012.
Depreciation and Amortization
Fiscal year 2011 depreciation and amortization expense, net of amortization of lease incentives, was $506 million. For fiscal year 2012, the company expects depreciation and amortization expense, net of amortization of lease incentives, to be about $475 million.
Operating Expenses Fourth quarter operating expenses were $1.0 billion, or 24.1 percent of net sales. Marketing expenses for the fourth quarter were $166 million. Fiscal year 2011 operating expenses were $3.8 billion, or 26.4 percent of net sales. Marketing expenses for the full year were $548 million, up $32 million compared with last year.
The company expects that operating margin for fiscal year 2012 will be about 10 percent.
The effective tax rate was 37.7 percent for the fourth quarter of fiscal year 2011. The effective tax rate for fiscal year 2011 was 39.2 percent. For fiscal year 2012, the company expects the effective tax rate to be about 39.5 percent. Inventory On a year-over-year basis inventory dollars per store were down 0.8 percent at the end of the fourth quarter of fiscal year 2011.
For fiscal year 2012, the company expects inventory dollars per store at the end of the first quarter to be about flat on a year-over-year basis.
During the fourth quarter of fiscal year 2011, the company repurchased about 4.5 million shares for $83 million. For fiscal year 2011, the company repurchased about 111 million shares for a total of $2.1 billion.
The company paid a dividend of $0.1125 per share during the fourth quarter of fiscal year 2011.
Fiscal year 2011 capital expenditures were $548 million.
For fiscal year 2012, the company expects capital spending to increase about 10 percent to approximately $600 million in support of its outlined strategies.
In fiscal year 2012, the company expects to open about 125 company-operated stores, net of repositions, 55 of which are international. The company expects that it will close about 115 company-operated stores, net of repositions. The closures are weighted towards Gap North America, consistent with the company's previously-stated strategy. Net square footage for company-operated stores is expected to decrease by about 1 percent by the end of fiscal year 2012 compared with the end of fiscal year 2011.
Gap Inc
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