GAP (GAP) Q2 FY2024 earnings: revenue $3.7 billion, up 4.8% on the year

GAP Inc. (GAP) reported revenue of $3.7 billion for Q2 FY2024, the quarter ended 3 August 2024, up 4.8% on the same quarter a year earlier. Net income was $206 million, up 76.1% on the year, and diluted earnings per share $0.54. The figures are the company's own, from the 10-Q it filed with the SEC on 30 August 2024.

Revenue$3.7 billionup 4.8%

Net income$206 millionup 76.1%

Diluted EPS$0.54

QuarterQ2 FY2024ended 3 August 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	3,720	3,388	n/a	n/a
Cost of revenue	2,137	1,991	n/a	n/a
Gross profit	1,583	1,397	n/a	n/a
Gross margin	42.6%	41.2%	n/a
Operating income	293	205	n/a	n/a
Operating margin	7.9%	6.1%	n/a
Interest expense	24.0	21.0	n/a	n/a
Pre-tax income	296	208	n/a	n/a
Income tax	90.0	50.0	n/a	n/a
Effective tax rate	30.4%	24.0%	n/a
Net income	206	158	n/a	n/a
Net margin	5.5%	4.7%	n/a
Diluted EPS	$0.54	$0.41	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	549	30.0	n/a	n/a
Capital expenditure	89.0	93.0	n/a	n/a
Free cash flow	460	-63.0	n/a	n/a
Free cash flow margin	12.4%	-1.9%	n/a
Cash from investing	-134	-291	n/a	n/a
Cash from financing	-47.0	-77.0	n/a	n/a
Depreciation and amortisation	123	124	n/a	n/a
Share-based compensation	31.0	27.0	n/a	n/a
Buybacks	0.0	0.0	n/a	n/a
Dividends paid	56.0	56.0	n/a	n/a
Dividend per share	$0.15	$0.15	n/a	n/a
Diluted shares, weighted	383m	383m	n/a	n/a
Shares outstanding at period end	376m	375m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Shareholders' equity	2,901	2,707	n/a	n/a
Debt	1,489	1,489	n/a	n/a
Operating lease liabilities	3,357	3,387	n/a	n/a
Other liabilities	3,762	3,325	n/a	n/a
Total liabilities and equity	11,509	10,908	n/a	n/a
Fixed assets	2,525	2,528	n/a	n/a
Investments	246	199	n/a	n/a
Cash and equivalents	1,900	1,532	n/a	n/a
Other assets	6,838	6,649	n/a	n/a
Total assets	11,509	10,908	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	3,767	4,298	3,388	3,720	3,829	4,149	3,463	3,725	3,942	4,236	3,497	3,651
Cost of revenue	2,211	2,626	1,991	2,137	2,194	2,537	2,015	2,189	2,272	2,622	2,080	1,722
Gross profit	1,556	1,672	1,397	1,583	1,635	1,612	1,448	1,536	1,670	1,614	1,417	1,929
Gross margin	41%	39%	41%	43%	43%	39%	42%	41%	42%	38%	41%	53%
Operating income	250	214	205	293	355	259	260	292	334	229	445	676
Operating margin	7%	5%	6%	8%	9%	6%	8%	8%	8%	5%	13%	19%
Interest expense	28.0	24.0	21.0	24.0	23.0	19.0	23.0	23.0	23.0	24.0	22.0	24.0
Pre-tax income	250	218	208	296	361	272	263	296	337	236	450	680
Tax rate	13%	15%	24%	30%	24%	24%	27%	27%	30%	28%	25%	26%
Net income	218	185	158	206	274	206	193	216	236	171	339	501
Net margin	6%	4%	5%	6%	7%	5%	6%	6%	6%	4%	10%	14%
Diluted EPS	$0.58	$0.49	$0.41	$0.54	$0.72	$0.54	$0.51	$0.57	$0.62	$0.45	$0.90	$1.38
Operating cash flow	304	700	30.0	549	291	616	-140	448	299	686	213	337
Capital expenditure	89.0	132	93.0	89.0	148	117	83.0	98.0	146	143	135	154
Free cash flow	215	568	-63.0	460	143	499	-223	350	153	543	78.0	183
Buybacks	0.0	0.0	0.0	0.0	0.0	75.0	70.0	82.0	0.0	3.0	401	200
Dividends paid	55.0	56.0	56.0	56.0	57.0	56.0	61.0	62.0	62.0	62.0	63.0	62.0
Shares outstanding	371m	372m	375m	376m	377m	374m	374m	371m	372m	372m	361m	351m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 3 August 2024, filed 30 August 2024, accession 0000039911-24-000179: the filing on EDGAR. All of GAP Inc.'s filings: EDGAR company page.

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