Gap Inc’s financial results for the year ending February 3, 2024 (FY23) showcased significant improvement compared to the previous year. The net income for FY23 surged to $502 million, marking a substantial recovery from a loss of $202 million in the preceding year.
Operating income for Gap Inc during FY23 also demonstrated a remarkable turnaround, reaching $560 million compared to a loss of $69 million in the prior year. However, despite the positive trend in profitability, net sales experienced a slight decline, decreasing to $14.9 billion from $15.6 billion in the previous year.
In the fourth quarter of FY23, Gap Inc continued its upward trajectory, with net income increasing to $185 million from a loss of $273 million in the same period of the previous year. Operating income also saw significant improvement, rising to $214 million from a $30 million loss in the fourth quarter of the preceding year. Additionally, net sales showed a marginal increase, reaching $4.3 billion compared to $4.2 billion in the corresponding period of the previous year.
Q4 brand performance
In the fourth quarter, Old Navy reported net sales of $2.29 billion, marking a 6% increase compared to the previous year. However, full-year net sales remained flat at $8.2 billion, with comparable sales declining by 1%.
Gap’s fourth-quarter net sales amounted to $1.01 billion, representing a 5% decrease from the same period last year. Nonetheless, comparable sales saw a positive trend, rising by 4%. For the full year, Gap reported net sales of $3.3 billion, down 11% year-over-year, while comparable sales increased by 1%.
Banana Republic’s fourth-quarter net sales totaled $567 million, down 2% compared to the previous year, with comparable sales declining by 4%. Similarly, full-year net sales amounted to $1.9 billion, an 8% decrease year-over-year, with comparable sales down 7%.
Athleta experienced a 4% decrease in fourth-quarter net sales, amounting to $419 million, while comparable sales dropped by 10%. Full-year net sales were $1.4 billion, down 8% from the previous year, with comparable sales decreasing by 12%.
Gap Inc.’s president and CEO, Richard Dickson, expressed satisfaction with the fourth quarter’s performance, highlighting market share gains and improvements in Old Navy and Gap. He emphasized the company’s commitment to financial and operational rigor, aiming to revitalize its brands for sustainable growth and shareholder value. Despite acknowledging the challenges ahead, Dickson expressed optimism about the opportunities awaiting the company.