Summary by Futu AI
Gap Inc reported robust financial results for Q3 2024, with net income increasing 26% to $274 million compared to $218 million in Q3 2023. Net sales rose 2% to $3.83 billion, driven by 7% growth in online sales, while store and franchise sales declined 2%. Gross margin expanded 140 basis points to 42.7% due to disciplined inventory management.Operating expenses decreased by $26 million to $1.28 billion, primarily due to reduced advertising costs, leading to a 270 basis point improvement in operating margin to 9.3%. The company maintained strong liquidity with $1.97 billion in cash and cash equivalents plus $250 million in short-term investments at quarter-end. Merchandise inventory decreased 2% year-over-year, reflecting continued focus on inventory optimization.Comparable sales increased 1% overall, with Gap Global up 3% and Athleta Global rising 5%. The company's strategic priorities include maintaining financial rigor through optimized cost structure, reinvigorating brands, strengthening digital capabilities, and integrating sustainability into business practices. Gap declared a quarterly dividend of $0.15 per share for Q4 2024.
