Gap Inc. reported robust Q2 fiscal 2024 results, with net sales up 5% to $3.7 billion and comparable sales rising 3% year-over-year. The company gained market share for the sixth consecutive quarter, driven by strength at Old Navy and Gap brands. Operating margin improved significantly to 7.9%, up 490 basis points from last year.Gross margin expanded 500 basis points to 42.6%, benefiting from lower commodity costs and improved promotional activity. The company ended the quarter with a strong cash position of $2.1 billion, up 59% from the prior year. Free cash flow reached $397 million, while inventory levels decreased by 5%.Based on the strong performance, Gap Inc. raised its fiscal 2024 outlook, projecting gross margin expansion of approximately 200 basis points and operating income growth in the mid to high 50% range. The company maintained its net sales guidance of a slight increase on a 52-week basis and reaffirmed its $5.1 billion operating expense target for the year.

Gap Inc. reported robust Q2 fiscal 2024 results, with net sales up 5% to $3.7 billion and comparable sales rising 3% year-over-year. The company gained market share for the sixth consecutive quarter, driven by strength at Old Navy and Gap brands. Operating margin improved significantly to 7.9%, up 490 basis points from last year.Gross margin expanded 500 basis points to 42.6%, benefiting from lower commodity costs and improved promotional activity. The company ended the quarter with a strong cash position of $2.1 billion, up 59% from the prior year. Free cash flow reached $397 million, while inventory levels decreased by 5%.Based on the strong performance, Gap Inc. raised its fiscal 2024 outlook, projecting gross margin expansion of approximately 200 basis points and operating income growth in the mid to high 50% range. The company maintained its net sales guidance of a slight increase on a 52-week basis and reaffirmed its $5.1 billion operating expense target for the year.