Home / Knowledge / News / Apparel/Garments / Gap maintains healthy balance sheet during Q3

Gap maintains healthy balance sheet during Q3

26
Nov '08
Gap Inc.reported that net earnings for the third quarter, which ended November 1, 2008, increased to $246 million, or $0.35 per share on a diluted basis, compared with $238 million, or $0.30 per share on a diluted basis, for the third quarter last year.

Third quarter net sales were $3.6 billion, compared with $3.9 billion for the third quarter of last year. The company's third quarter comparable store sales decreased 12 percent, compared with a decrease of 5 percent in the third quarter of last year. The company's online sales for the third quarter increased 15 percent to $284 million, compared with $247 million for the third quarter of last year. “We're pleased with our ability to improve our earnings results during the third quarter,” said Glenn Murphy, chairman and chief executive officer of Gap Inc.

“While we expect the challenging economic environment to continue, we'll focus on offering our customers an engaging store experience and products at the right value proposition to stand out this holiday season.”

The company continued to generate strong cash flow & maintains a healthy balance sheet, as demonstrated by the $1.6 billion in cash and investments on hand at the end of the third quarter.

Year-todate free cash flow, defined as net cash provided by operating activities less purchases of property and equipment, was an inflow of $519 million.

Gap Inc. also reaffirmed that it expects full year diluted earnings per share on a GAAP basis to be $1.30 to $1.35, compared with fiscal year 2007 diluted earnings per share of $1.05.

Sales Results By Division
The detail table represents the company's third quarter comparable store sales and net sales by division:

Additional Results and 2008 Outlook
Effective Tax Rate
The effective tax rate was 38.2 percent for the third quarter of fiscal year 2008. The company continues to expect that the effective tax rate will be about 39 percent for fiscal year 2008.

Cash and Investments
The company continues to expect to generate about $1 billion in free cash flow for the full year.

Share Repurchases
During the third quarter, the company repurchased 5.7 million shares for a total of $100 million. Approximately 0.9 million of these 5.7 million shares were repurchased from individual members of the Fisher family as part of the company's previously announced purchase agreements with them.

Year-to-date, the company has repurchased 33.4 million shares for a total of $600 million.

Dividends
The company paid a dividend of $0.085 per share during the third quarter.

Margins
Gross margin of 38.7 percent increased 120 basis points in the third quarter compared with the prior year.

Operating margin for the third quarter was 11.1 percent compared with 9.5 percent for the third quarter of fiscal year 2007. The company continues to expect operating margin to be about 10 percent for fiscal year 2008.


Interviews View All

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Pinkesh Jain, Everflow Petrofils Ltd

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Evelyne Cholet, UCMTF

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Suresh P Bagrecha,

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

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

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

Leave your Comments


October 2019

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

news category


Related Categories:

Advanced Search