Gap Inc. reported second-quarter fiscal 2025 results with net sales flat compared to the previous year.
Diluted earnings per share increased by 6% year-over-year, reaching $0.57.
The company's cash, cash equivalents, and short-term investments grew by 13% compared to the prior year.
Positive Comparable Sales
Gap Inc. achieved positive comparable sales for the 6th consecutive quarter, driven by its major brands like Old Navy, Gap, and Banana Republic.
Financial Performance
The company's operating income was $292 million with an operating margin of 7.8%, showcasing a strong financial performance.
Return to Shareholders
During the quarter, Gap Inc. returned $144 million to shareholders through dividends and share repurchases.
- The company's gross margin decreased by 140 basis points, mainly influenced by changes in merchandise margin and operating expenses.
- Online sales increased by 3% compared to the previous year, representing 34% of total net sales.
Gap Inc.'s second-quarter results reflect a solid performance with positive trends in comparable sales and earnings. The company's strategic focus on key brands like Old Navy and Gap is yielding positive results, reinforcing its position in the apparel market.