US' Gap reports net sales of $14.9 bn in FY23

The gross margin expanded to 38.8 per cent, up by 450 basis points over the prior year's reported margin. Operating expenses saw a reduction by 6 per cent to $5.17 billion, resulting in a reported operating income of $560 million and an adjusted operating income of $606 million. The fiscal ended with a reported net income of $502 million and an adjusted net income of $536 million, the company said in a media release.

In the fourth quarter of fiscal 2023, Gap experienced a 1 per cent increase in net sales to $4.3 billion. Comparable sales remained steady, whereas store sales witnessed a 4 per cent increase. Online sales dipped by 2 per cent but represented 40 per cent of the quarter's total net sales. The gross margin for the quarter rose to 38.9 per cent, marking a 530-basis point improvement from the previous year. Operating income for the quarter reached $214 million, leading to an operating margin of 5 per cent. The quarter concluded with a net income of $185 million and diluted earnings per share of $0.49.

"The fourth quarter exceeded expectations on several key metrics along with market share gains, reflecting improved trends at Old Navy and Gap and strong continued progress on margins and cash flow," said Gap president and chief executive officer, Richard Dickson. "The financial and operational rigor we have worked to develop, and will continue to pursue, is enabling us to focus on reinvigorating our brands with the goal of generating profitable growth and value for shareholders. While there is a lot of work to do, I am inspired by the team's commitment and energised by the opportunities ahead."

Fibre2Fashion News Desk (DP)