Home / Knowledge / News / Apparel/Garments / Gap posts lower Q4 profit, plans to close 100 stores in 2009
Gap posts lower Q4 profit, plans to close 100 stores in 2009
02
Mar '09
Delivering solid financial results, Gap Inc reported net earnings for fiscal year 2008 increased to $967 million, or $1.34 per share on a diluted basis, compared with $833 million, or $1.05 per share on a diluted basis, for fiscal year 2007. Net earnings increased by 16 percent over fiscal year 2007, while earnings per share increased 28 percent over the prior year.

For the fourth quarter, which ended January 31, 2009, the company's net earnings were $243 million, or $0.34 per share on a diluted basis, compared with $265 million, or $0.35 per share on a diluted basis, for the same period last year.

“Our ability to drive healthy margins and achieve significant cost savings helped us deliver earnings growth of 16 percent over the course of a very challenging year,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “With nearly $2 billion in cash on hand and virtually no debt, we have a strong foundation that will allow our globally recognized brands to compete effectively this year as we navigate the current environment.”

The company generated $981 million of free cash flow in fiscal year 2008, defined as net cash provided by operating activities less purchases of property and equipment, and ended the fiscal year with $1.8 billion in cash.

Fourth Quarter Results:
Fourth quarter net sales were $4.1 billion, compared with $4.7 billion for the fourth quarter of last year. The company's fourth quarter comparable store sales decreased 14 percent, compared with a decrease of 3 percent in the fourth quarter of last year. The company's online sales for the fourth quarter increased 10 percent to $319 million, compared with $289 million for the fourth quarter of last year.

Fiscal Year 2008 Results:
Net sales for the 52 weeks ended January 31, 2009 were $14.5 billion compared with $15.8 billion for the 52 weeks ended February 2, 2008. The company's fiscal year 2008 comparable store sales decreased 12 percent compared with a decrease of 4 percent for the prior year. The company's online sales for the fiscal year increased 14 percent to $1.03 billion, compared with $903 million in the prior year.

Additional Results and 2009 Outlook:

Margins
Gross margin for fiscal year 2008 was 37.5 percent and increased 140 basis points compared with fiscal year 2007.

Operating margin for fiscal year 2008 was 10.7 percent compared with 8.3 percent for fiscal year 2007.

Share Repurchases:
During the fourth quarter, the company repurchased 12.2 million shares for a total of $146 million. For fiscal year 2008, the company repurchased 45.6 million shares for a total of $745 million.

Dividends:
The company paid a dividend of $0.085 per share during the fourth quarter. The company announced that it intends to maintain its annual dividend per share at $0.34 for fiscal year 2009.

Effective Tax Rate:

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search