Gap (GAP) Q4 2024 Earnings
How Did GAP Stock React to Q4 2024 Earnings?
S&P 500 over the same 30 days: −13.79%.
Did GAP Beat Earnings? Q4 2024 Results
Yes. Gap reported Q4 2024 earnings of $0.54 a share on Mar 6, 2025, beating the $0.35 consensus estimate by 54.3%. Revenue was $4.1B against a $4.1B estimate.
Gap Inc. closed out fiscal 2024 with a stronger-than-expected fourth quarter, posting GAAP diluted EPS of $0.54 against a Wall Street consensus of $0.35, a beat of 54.29%, while revenue of $4.15 billion edged past the $4.06 billion estimate by 2.08%. The headline revenue decline of 3.5% year over year was largely a calendar quirk: Q4 spanned 13 weeks versus 14 in the prior-year period, and on a comparable basis net sales actually grew 3%. The single clearest driver of the earnings strength was disciplined cost management paired with gross margin holding firm at 38.9%, even as all four brands delivered positive comparable sales for the quarter, led by Gap brand at plus 7% comps and a notable Banana Republic turnaround to plus 4% from negative 4% a year ago. Full-year operating income nearly doubled to $1.11 billion, and the company ended the year with $2.59 billion in cash. Looking ahead, management guided fiscal 2025 net sales growth of 1% to 2% and operating income growth of 8% to 10%, while also signaling a pivot toward AI-driven innovation as the next phase of its operational strategy.
- Comparable sales up 3% in Q4 with all four brands gaining market share for the year
- Merchandise margin increased 20 basis points in Q4 driven by lower commodity costs
- Old Navy winning in key categories like active and denim with innovation and newness
- Gap brand executing reinvigoration playbook driving increased relevance and revenue
- Online sales represented 41% of total Q4 net sales
- Full year gross margin of 41.3% expanded 250 basis points, one of highest in last 20 years
- Operating expenses declined 2% year-over-year for the full year
“We ended the year delivering another successful quarter, exceeding financial expectations and gaining market share for the 8th consecutive quarter.”
Gap CEO, on the earnings call
What Was Gap's Outlook in Q4 2024?
For full year fiscal 2025, Gap Inc. expects net sales growth of 1% to 2%, operating income growth of 8% to 10%, net interest income of approximately $15 million, an effective tax rate of approximately 26%, capital expenditures of approximately $600 million, and approximately 35 net store closures. For the first quarter of fiscal 2025, the company expects net sales to be flat to up slightly, gross margin to expand slightly year-over-year, and operating expense as a percentage of net sales to leverage slightly year-over-year. The outlook is based on the company's assessment of current macroeconomic headwinds including inflationary pressures, tariffs, supply chain disruptions, and foreign currency volatility.
GAP YoY Financials
| Metric | Q4 2024 | Q4 2023 | Year over year |
|---|---|---|---|
| Revenue | $4.1B | $4.3B | −3.5% |
| Gross Profit | $1.6B | $1.7B | −3.6% |
| Operating Income | $259.0M | $214.0M | +21.0% |
| Net Income | $206.0M | $185.0M | +11.4% |
GAP Revenue by Segment
GAP Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.