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Gap Inc re-affirms full year EPS guidance
23 Nov '10
5 min read
At the end of the fourth quarter of fiscal year 2010, the company expects inventory per square foot to be up in the high single digits compared with the fourth quarter of fiscal year 2009. Similar to the third quarter of fiscal year 2010 the company expects inventory per square foot growth for North America to be below the Gap Inc. growth figure for the fourth quarter. Please see the Financials section under the Investors tab on www.gapinc.com for the company's explanation of numerical range guidance.
Depreciation and Amortization
The company continues to expect depreciation and amortization expense, net of amortization of lease incentives, for fiscal year 2010 to be about $550 million.
Operating Margin
The company continues to expect that the operating margin for fiscal year 2010 will be about 13 percent.
Effective Tax Rate
The effective tax rate was 39.6 percent for the third quarter of fiscal year 2010. The company continues to expect that the effective tax rate will be about 39 percent for fiscal year 2010.
Capital Expenditures
Year to date, capital expenditures were $413 million. The increase from fiscal year 2009 is primarily driven by Old Navy store remodels, launching online globally, and new international store openings, particularly outlet stores. The company continues to expect fiscal year 2010 capital expenditures to be about $575 million.
Store Count and Square Footage
During the third quarter of fiscal year 2010, the company opened 25 store locations and closed 19 store locations.
Year to date, the company has opened 44 stores weighted towards international outlet and closed 57 stores weighted towards Gap brand.
The company ended the third quarter of fiscal year 2010 with 3,082 store locations and net square footage decreased about 2.5 percent compared with the third quarter of fiscal year 2009.
For fiscal year 2010, the company continues to expect that it will open about 65 stores, weighted towards international outlet. The company now expects to close about 100 stores, weighted towards Gap brand, compared with previous guidance of 110 stores. The company now expects that net square footage will decrease about 2 percent in fiscal year 2010 compared with last year.
Depreciation and Amortization
The company continues to expect depreciation and amortization expense, net of amortization of lease incentives, for fiscal year 2010 to be about $550 million.
Operating Margin
The company continues to expect that the operating margin for fiscal year 2010 will be about 13 percent.
Effective Tax Rate
The effective tax rate was 39.6 percent for the third quarter of fiscal year 2010. The company continues to expect that the effective tax rate will be about 39 percent for fiscal year 2010.
Capital Expenditures
Year to date, capital expenditures were $413 million. The increase from fiscal year 2009 is primarily driven by Old Navy store remodels, launching online globally, and new international store openings, particularly outlet stores. The company continues to expect fiscal year 2010 capital expenditures to be about $575 million.
Store Count and Square Footage
During the third quarter of fiscal year 2010, the company opened 25 store locations and closed 19 store locations.
Year to date, the company has opened 44 stores weighted towards international outlet and closed 57 stores weighted towards Gap brand.
The company ended the third quarter of fiscal year 2010 with 3,082 store locations and net square footage decreased about 2.5 percent compared with the third quarter of fiscal year 2009.
For fiscal year 2010, the company continues to expect that it will open about 65 stores, weighted towards international outlet. The company now expects to close about 100 stores, weighted towards Gap brand, compared with previous guidance of 110 stores. The company now expects that net square footage will decrease about 2 percent in fiscal year 2010 compared with last year.
Gap Inc
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