Gap Inc. Reports Second Quarter Fiscal 2022 Results

Gap Inc. (NYSE: GPS), a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S., today reported financial results for its second quarter ended July 30, 2022.

“This is a pivotal moment in time. While we search for a new leader, I am taking on the role as Interim President & CEO of Gap Inc. with a deep commitment to the company’s success and impatience for change. Having navigated the global retail industry across brands and markets, I am not approaching this work from the sidelines,” said Bob Martin, Executive Chairman and Interim CEO, Gap Inc. “We are taking actions to better optimize profitability and cash flow in the near term, reducing operating costs as well as impairing unproductive inventory. While our elevated inventory and pressured margins are current realities against unsettled market conditions, they do not define our ability to capitalize on Gap Inc.’s strengths to win.

Mr. Martin continued, “Gap Inc.’s iconic brands, powerful assets, well-established values and scaled omni-platform are central to our strategic direction. Our team has the capabilities to deliver what our customers, and our shareholders, expect — what’s needed for profitable growth. Importantly, as we adopt behaviors that enable sustainable change, I’m confident we will unleash our potential and drive value creation over the long term.”

Second Quarter Fiscal 2022 – Financial Results
*Net sales of $3.86 billion, down 8% compared to last year.
*Comparable sales were down 10% year-over-year.
*Online sales declined 6% compared to last year and represented 34% of total net sales.
*Store sales declined 10% compared to last year. The company ended the quarter with 3,390 store locations in over 40 countries, of which 2,799 were company operated.
*Reported operating loss was $28 million in the quarter; reported operating margin of (0.7%).
*Reported net loss of $49 million.
details at: https://www.gapinc.com/en-us/articles/2022/08/gap-inc-reports-second-quarter-fiscal-2022-results

Related Posts

Publishers Have Been Hit By Postal Rate Hikes Of 47.8% Since 2021: News/Media Alliance (mediapost.com)

The U.S. Postal Service is harming both publishers and itself with its current ratemaking process, the News/Media Alliance (NMA) charges in a letter to the Postal Rate Commission. “While the Postal Service incurs record losses, Periodicals mailers have been forced to make difficult business decisions ranging from cutting staff to shuttering titles and closing their doors, all of which ultimately harms our society,” the letter states. Since 2021, the USPS has raised periodical rates “generally twice a year by a cumulative total of 47.8 percent,” the NMA writes. “During that time, the portion of those increases due to the additional rate authorities have exceeded the rate of inflation by more than 150 percent.”

US Postal Service Suggests New Prices for 2025

The United States Postal Service (USPS) has announced a proposal for new postage rates set to take effect in early 2025, citing the need to stay competitive and increase revenue. If approved, the change would raise Shipping Services prices by approximately 3.2 percent for Priority Mail service and Priority Mail Express service, 3.9 percent for USPS Ground Advantage, and 9.2 percent for Parcel Select, according to the announcement on the service's website. The proposed pricing action is part of "Delivering for America," the agency's 10-year plan for "achieving financial sustainability and service excellence."

Meredith Continues Aggressive Execution Of Time Inc. Integration Plan

"We have made significant progress executing on these initiatives since we closed on the acquisition just six weeks ago," said Meredith President and CEO Tom Harty. "For example, today we are announcing we have completed our portfolio review and decided to explore the sale of the TIME, Sports Illustrated, Fortune, and Money brands. These are attractive properties with strong consumer reach. However, they have different target audiences and advertising bases, and we believe each brand is better suited for success with a new owner. We are pleased with the inbound interest we have received, and we are confident these brands will be positioned for growth with an owner that shares Meredith's respect for editorial integrity and independence." Finally, Meredith announced headcount reductions, part of its plan to realize between $400 to $500 million of cost synergies from the Time Inc. acquisition. Approximately 200 employees have been notified that their positions have been eliminated. Additionally, Meredith said approximately 1,000 more positions will be eliminated over the next 10 months. Previously, Meredith announced the elimination of approximately 600 positions as it transitions subscription fulfillment operations to a lower-cost provider. These headcount reductions do not include the impact of any potential divestitures. Click Read More below for additional information.
Back To Top
×Close search
Search