Summary by Moomoo AI
Gap Inc. delivered strong Q3 fiscal 2024 results with net sales increasing 2% to $3.8 billion and comparable sales up 1% YoY. Operating margin improved 270 basis points to 9.3%, while net income reached $274 million with diluted EPS of $0.72. Online sales grew 7%, representing 40% of total sales.The company saw market share gains across all brands, with Gap Global posting 3% comparable sales growth, Athleta up 5%, and Old Navy remaining flat. Banana Republic's comparable sales declined 1% despite a 2% net sales increase. Inventory management improvements helped drive a 90-basis point increase in merchandise margin.Based on strong performance, Gap raised its full year fiscal 2024 outlook, now projecting net sales growth of 1.5-2.0% on a 52-week basis and approximately 220 basis points gross margin expansion. The company maintains a strong financial position with $2.2 billion in cash and equivalents, up 64% from prior year.
