4th accounting annual edition financial gap report

Accumulated other comprehensive loss. Total shareholders' investment. Total liabilities and shareholders' investment. Consolidated Statements of Cash Flows. Operating activities. Earnings from discontinued operations, net of tax. Adjustments to reconcile net earnings to cash provided by operations:. Depreciation and amortization. Share-based compensation expense. Loss on debt extinguishment. Changes in operating accounts:.

Other assets. Accrued and other liabilities. Cash provided by operating activities—continuing operations. Cash provided by operating activities—discontinued operations.

Cash provided by operations. Investing activities. Expenditures for property and equipment. Proceeds from disposal of property and equipment. Other investments.

Cash required for investing activities. Financing activities. Additions to long-term debt. Reductions of long-term debt. Dividends paid. Repurchase of stock. Stock option exercises. Cash required for financing activities. Net increase in cash and cash equivalents. Cash and cash equivalents at beginning of period. Cash and cash equivalents at end of period. Operating Results. Rate Analysis.

Gross margin rate. Depreciation and amortization exclusive of depreciation included in cost of sales expense rate. Operating income margin rate. Note: Gross margin rate is calculated as gross margin sales less cost of sales divided by sales. All other rates are calculated by dividing the applicable amount by total revenue. Comparable Sales.

Comparable sales change. Drivers of change in comparable sales:. Number of transactions. Average transaction amount. Contribution to Comparable Sales Change. Stores originated channel comparable sales change. Contribution from digitally originated sales to comparable sales. Total comparable sales change. Note: Amounts may not foot due to rounding. Sales by Channel.

Stores originated. Digitally originated. RedCard Penetration. Target Debit Card. Target Credit Cards. Total RedCard Penetration. Number of Stores and Retail Square Feet. Number of Stores. Retail Square Feet a. In thousands, reflects total square feet less office, distribution center, and vacant space. This metric excludes certain items presented below. We believe this information is useful in providing period-to-period comparisons of the results of our continuing operations.

This measure is not in accordance with, or an alternative to, generally accepted accounting principles in the United States GAAP. The most comparable GAAP measure is diluted earnings per share from continuing operations.

Additional information regarding factors that could cause results to differ can be found in our Annual Report on Form K filed with the Securities and Exchange Commission on March 16, , as well as our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on information as of November 23, We assume no obligation to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

The company uses omni-channel capabilities to bridge the digital world and physical stores to further enhance its shopping experience. For more information, please visit www. Please find our financial tables here. LinkedIn: link opens in a new window Facebook: link opens in a new window Twitter: link opens in a new window.

November 23, LinkedIn: link opens in a new window Facebook: link opens in a new window Twitter: link opens in a new window. Categories Company Press Release. Tags earnings Financials.

Company Read more about Gap Inc. Third Quarter Highlights by the Numbers. Announces Fourth Quarter Dividend. Announces Fourth Quarter Dividend November 10, Second Quarter Highlights by the Numbers. The comparable sales calculation reflects online sales and comparable sales days in stores that were open. Net sales and comparable sales by brand for the fourth quarter compared to the fourth quarter were as follows:.

Gross margin was Rent, occupancy and depreciation savings leveraged basis points, as online sales increased and as the company continued to close unprofitable stores, favorably settle lease liabilities and derive benefit from rent negotiations.

Merchandise margins deleveraged basis points driven by basis points of higher shipping costs associated with increased online sales and carrier surcharges. There were also increases in freight costs that put pressure on the product margin, but despite these increases product margin expanded due to lower promotional activities. The company noted it is undergoing a strategic review of its Intermix business.

Excluding the impact of impairment charges during the quarter related to Intermix, adjusted operating expenses were Store expense savings largely offset the investment in demand generation, with the nominal increase in expenses over last year being mostly driven by real estate termination fees and higher distribution center costs. The fourth quarter effective tax rate primarily reflects changes in the estimated benefit associated with the enactment of the Coronavirus Aid, Relief, and Economic Security CARES Act and non-recurring tax benefits related to legal entity structure changes that occurred in the quarter.

The fiscal year effective tax rate reflects the estimated benefit associated with the enactment of the Coronavirus Aid, Relief, and Economic Security CARES Act and non-recurring tax benefits related to legal entity structure changes. Excluding these items, there would be a decrease in the effective tax rate of approximately 21 percentage points. As of the end of fiscal year , while Gap Inc. The increase in inventory was driven primarily by:. Please see the reconciliation of free cash flow, a non-GAAP financial measure, in the tables at the end of this press release.