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LA Galaxy 'Have To Redefine Who We're Going To Be' After Riqui Puig InjuryNet sales increased 2% versus last year with comparable sales up 1% Operating margin of 9.3% improved 270 basis points versus last year Market share gains across all brands in the quarter Raises outlook for fiscal 2024 net sales, gross margin and operating income growth SAN FRANCISCO , Nov. 21, 2024 /PRNewswire/ -- Gap Inc. (NYSE: GAP), the largest specialty apparel company in the U.S. and a house of iconic brands including Old Navy, Gap, Banana Republic, and Athleta, today reported financial results for its third quarter ended November 2, 2024. "I'm proud that Gap Inc. delivered another successful quarter, growing net sales for the 4 th consecutive quarter and gaining market share across all brands while meaningfully expanding operating margin," said President and Chief Executive Officer, Richard Dickson . "Consistent execution of our strategic priorities, including the rigor and repetition we're applying to our brand reinvigoration playbook, is making us a stronger company and demonstrates our continued progress in unlocking Gap Inc.'s full potential." Dickson continued: "Holiday is off to a strong start and we remain focused on executing with excellence in the fourth quarter. Our performance year-to-date gives us the confidence to raise our full year outlook for sales, gross margin and operating income growth." Third Quarter Fiscal 2024 – Financial Results Balance Sheet and Cash Flow Highlights Additional information regarding free cash flow, which is a non-GAAP financial measure, is provided at the end of this press release along with a reconciliation of this measure from the most directly comparable GAAP financial measure for the applicable period. Third Quarter Fiscal 2024 – Global Brand Results Comparable Sales Third Quarter 2024 2023 Old Navy — % 1 % Gap 3 % (1) % Banana Republic (1) % (8) % Athleta 5 % (19) % Gap Inc. 1 % (2) % Old Navy: Gap: Banana Republic: Athleta: Fiscal 2024 Outlook As a result of its strong third quarter results, the company is raising its full year outlook for net sales, gross margin and operating income growth compared to prior expectations. Please note that the company's projected full year fiscal 2024 operating income growth below is provided in comparison to its full year fiscal 2023 adjusted operating income, which excludes $93 million in restructuring costs and a $47 million gain on sale of a building. Full Year Fiscal 2024 Current FY24 Outlook Prior FY24 Outlook FY23 Results Net sales Up 1.5% to 2.0% on a 52-week basis Up slightly on a 52-week basis $14.9 billion 1 Gross margin Approximately 220 bps expansion Approximately 200 bps expansion 38.8 % Operating expense Approximately $5.1 billion Approximately $5.1 billion $5.17 billion (adjusted) 2 Operating income Mid to High 60% growth range Mid to High 50% growth range $606 million (adjusted) 3 Effective tax rate Approximately 26.5% Approximately 28% 9.7 % Capital expenditures Approximately $500 million Approximately $500 million $420 million 1 Fiscal year 2023 consisted of 53 weeks and the extra week drove approximately $160 million of incremental sales. 2 Fiscal year 2023 adjusted operating expense of $5.17 billion excludes $89 million in restructuring costs and a $47 million gain on sale. 3 Fiscal year 2023 adjusted operating income of $606 million excludes $93 million in restructuring costs and a $47 million gain on sale. Webcast and Conference Call Information Whitney Notaro , Head of Investor Relations at Gap Inc., will host a conference call to review the company's third quarter fiscal 2024 results beginning at approximately 2:00 p.m. Pacific Time today. Ms. Notaro will be joined by President and Chief Executive Officer, Richard Dickson and Chief Financial Officer, Katrina O'Connell . A live webcast of the conference call and accompanying materials will be available online at investors.gapinc.com . A replay of the webcast will be available at the same location. Non-GAAP Disclosure This press release and related conference call include financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to provide investors with additional useful information about the company's financial performance, to enhance the overall understanding of its past performance and future prospects, and to allow for greater transparency with respect to important metrics used by management for financial and operating decision-making. The company presents these non-GAAP financial measures to assist investors in seeing its financial performance from management's view and because it believes they provide an additional tool for investors to use in computing the company's core financial performance over multiple periods with other companies in its industry. Additional information regarding the intended use of non-GAAP measures included in this press release and related conference call is provided in the tables to this press release. The non-GAAP measures included in this press release and related conference call are adjusted operating expense/adjusted SG&A, adjusted operating income, adjusted operating margin, adjusted diluted earnings per share, and free cash flow. These non-GAAP measures exclude the impact of certain items that are set forth in the tables to this press release. In addition, the company's outlook includes projected full year fiscal 2024 operating income growth compared to its full year fiscal 2023 adjusted operating income. The non-GAAP measures used by the company should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP and may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted. The company urges investors to review the reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures included in the tables to this press release below, and not to rely on any single financial measure to evaluate its business. The non-GAAP financial measures used by the company have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. Forward-Looking Statements This press release and related conference call and accompanying materials contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," "project," and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the following: becoming a high performing company; unlocking Gap Inc.'s potential; our four strategic priorities, including maintaining and delivering financial and operational rigor, the reinvigoration of our brands, strengthening our operating platform, and energizing our culture; driving relevance and revenue by executing on our brand reinvigoration playbook; expectations for Old Navy for the holiday season; accelerating Old Navy's presence in the Active category; Old Navy's holiday activations and product; reigniting Gap brand's leadership in trend-right products and creative expression through big ideas and culturally relevant messaging; reestablishing Banana Republic to thrive in the premium lifestyle space; evolving Banana Republic's assortment and fit; continuing to fix the fundamentals at Banana Republic; Banana Republic's holiday product; Athleta's trajectory; Athleta's holiday product; enhancing Athleta's in-store and online experiences; driving high-performance across our teams; executing with excellence; Gap Inc.'s positioning going into the holiday season; expectations for our full year performance; expected year-end inventory levels; expected full year fiscal 2024 net sales; the expected impact of the loss of the 53rd week on full year fiscal 2024 net sales; expected fourth quarter fiscal 2024 net sales; the expected impacts of the loss of the 53rd week and the weekly calendar shift on fourth quarter fiscal 2024 net sales; expected full year fiscal 2024 gross margin; the expected impacts of commodity costs and better inventory management on full year fiscal 2024 gross margin; expected full year fiscal 2024 ROD; expected fourth quarter fiscal 2024 gross margin; the expected impact of the loss of the 53rd week on fourth quarter fiscal 2024 gross margin; expected full year fiscal 2024 SG&A/operating expense; continuing cost discipline and unlocking more efficiencies in the business; expected full year fiscal 2024 operating income; expected full year fiscal 2024 effective tax rate; expected full year fiscal 2024 capital expenditures; generating sustainable, profitable growth and delivering long-term shareholder value; and our dividend policy. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following risks, any of which could have an adverse effect on our business, financial condition, results of operations, or reputation: the overall global economic and geopolitical environment, including the ongoing Russia - Ukraine and Israel-Hamas conflicts and recent elections in the United States , and impacts on consumer spending patterns; social and political unrest in our sourcing countries, including Bangladesh , and disruptions to global trade and shipping capacity, including in the Red Sea; the risk that we or our franchisees may be unsuccessful in gauging apparel trends and changing consumer preferences or responding with sufficient lead time; the highly competitive nature of our business in the United States and internationally; the risk that we may be unable to manage our inventory effectively and the resulting impact on our gross margins and sales; the risk that our investments in customer, digital, and omni-channel shopping initiatives may not deliver the results we anticipate; the risk that we fail to maintain, enhance, and protect our brand image and reputation; the risk of loss or theft of assets, including inventory shortage; the risk that we fail to manage key executive succession and retention or continue to attract qualified personnel; reductions in income and cash flow from our credit card arrangement related to our private label and co-branded credit cards; the risk that changes in our business strategy or restructuring our operations may not generate the intended benefits or projected cost savings; the risk that trade matters could increase the cost or reduce the supply of apparel available to us; the risks to our business, including our costs and global supply chain, associated with global sourcing and manufacturing; the risks to our reputation or operations associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct; the risk that we or our franchisees may be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying, or terminating leases for existing store locations effectively; engaging in or seeking to engage in strategic transactions that are subject to various risks and uncertainties; the risk that our efforts to expand internationally may not be successful; the risk that our franchisees and licensees could impair the value of our brands; the risk of data or other security breaches or vulnerabilities that may result in increased costs, violations of law, significant legal and financial exposure, and a loss of confidence in our security measures; the risk that failures of, or updates or changes to, our IT systems may disrupt our operations; the risk that our comparable sales and margins may experience fluctuations, that we may fail to meet financial market expectations, or that the seasonality of our business may experience fluctuations; the risk of foreign currency exchange rate fluctuations; the risk that our level of indebtedness may impact our ability to operate and expand our business; the risk that we and our subsidiaries may be unable to meet our obligations under our indebtedness agreements; the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets; natural disasters, public health crises (such as pandemics and epidemics), political crises (such as the ongoing Russia - Ukraine and Israel-Hamas conflicts), negative global climate patterns, or other catastrophic events; evolving regulations and expectations with respect to ESG matters, including climate reporting; the adverse effects of climate change on our operations and those of our franchisees, vendors, and other business partners; our failure to comply with applicable laws and regulations and changes in the regulatory or administrative landscape; the risk that we will not be successful in defending various proceedings, lawsuits, disputes, and claims; the risk that our estimates and assumptions used when preparing our financial information are inaccurate or may change; the risk that changes in the geographic mix and level of income or losses, the expected or actual outcome of audits, changes in deferred tax valuation allowances, and new legislation could impact our effective tax rate, or that we may be required to pay amounts in excess of established tax liabilities; the risk that changes in our business structure, our performance or our industry could result in reductions in our pre-tax income or utilization of existing tax carryforwards in future periods, and require additional deferred tax valuation allowances; the risk that the adoption of new accounting pronouncements will impact future results; and the risk that additional information may arise during our close process or as a result of subsequent events that would require us to make adjustments to our financial information. Additional information regarding factors that could cause results to differ can be found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 19, 2024 , as well as our subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on information as of November 21, 2024 . We assume no obligation to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. About Gap Inc. Gap Inc., a house of iconic brands, is the largest specialty apparel company in America. Its Old Navy , Gap , Banana Republic , and Athleta brands offer clothing, accessories, and lifestyle products for men, women and children. Since 1969, Gap Inc. has created products and experiences that shape culture, while doing right by employees, communities and the planet. Gap Inc. products are available worldwide through company-operated stores, franchise stores, and e-commerce sites. Fiscal year 2023 net sales were $14.9 billion . For more information, please visit www.gapinc.com . Investor Relations Contact: Nina Bari Investor_relations@gap.com Media Relations Contact: Megan Foote Press@gap.com The Gap, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED ($ in millions) November 2, 2024 October 28, 2023 ASSETS Current assets: Cash and cash equivalents $ 1,969 $ 1,351 Short-term investments 250 — Merchandise inventory 2,331 2,377 Other current assets 580 646 Total current assets 5,130 4,374 Property and equipment, net of accumulated depreciation 2,546 2,552 Operating lease assets 3,217 3,200 Other long-term assets 960 926 Total assets $ 11,853 $ 11,052 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,523 $ 1,433 Accrued expenses and other current liabilities 1,135 1,078 Current portion of operating lease liabilities 617 604 Income taxes payable 50 24 Total current liabilities 3,325 3,139 Long-term liabilities: Long-term debt 1,489 1,488 Long-term operating lease liabilities 3,360 3,456 Other long-term liabilities 544 509 Total long-term liabilities 5,393 5,453 Total stockholders' equity 3,135 2,460 Total liabilities and stockholders' equity $ 11,853 $ 11,052 The Gap, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED 13 Weeks Ended 39 Weeks Ended ($ and shares in millions except per share amounts) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 Net sales $ 3,829 $ 3,767 $ 10,937 $ 10,591 Cost of goods sold and occupancy expenses 2,194 2,211 6,322 6,488 Gross profit 1,635 1,556 4,615 4,103 Operating expenses 1,280 1,306 3,762 3,757 Operating income 355 250 853 346 Interest, net (6) — (12) 8 Income before income taxes 361 250 865 338 Income tax expense 87 32 227 21 Net income $ 274 $ 218 $ 638 $ 317 Weighted-average number of shares - basic 377 371 376 369 Weighted-average number of shares - diluted 383 375 383 373 Earnings per share - basic $ 0.73 $ 0.59 $ 1.70 $ 0.86 Earnings per share - diluted $ 0.72 $ 0.58 $ 1.67 $ 0.85 The Gap, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED 39 Weeks Ended ($ in millions) November 2, 2024 (a) October 28, 2023 (a) Cash flows from operating activities: Net income $ 638 $ 317 Depreciation and amortization 371 394 Gain on sale of building — (47) Change in merchandise inventory (344) (5) Change in accounts payable 156 133 Other, net
No comedian benefitted from Netflix's roast of Tom Brady more than Nikki Glaser. Fans absolutely loved her jokes about the former NFL quarterback's divorce from Gisele Bundchen. Glaser's comments about Bundchen drew so much attention that apparently they bothered the Brazilian supermodel. The comedian ultimately doubled down by saying she doesn't regret what she said on the Netflix special. "I love her so much, but I feel like she's been roasting me just by existing my whole life because of how hot she is," Glaser said . "So yeah, I felt like she had it coming. But not really." While we're on the subject of turning up the heat, Glaser left her social media followers speechless this Thursday by dropping a few photos from a shoot she did with Interview Magazine. In one of the photos, Glaser ditched her clothes to ride a motorcycle . Judging by the reactions on Instagram, her fans loved it. "She's an icon," one person commented. "She’s a legend. And she IS THE MOMENT." "This is amazing," another person wrote. "Omg Nikki this is iconic," a third fan said. View the original article to see embedded media. Glaser currently has 1.5 million followers on Instagram. That number could increase by the time this weekend is over. For fans who want to see more of Glaser's photo shoot with Interview Magazine, she shared behind-the-scenes footage on Thursday night. Matt Winkelmeyer/Getty Images As part of her work with Interview Magazine, Glaser spoke to Cara Delevingne about her career. "I tend to be really serious, really emotional, and I think that helps with the comedy, but I’m not constantly making people laugh," Glaser said . "I feel like I’m disappointing in that way." Not every comedy bit Glaser performs is a hit, as we all saw on "Thursday Night Football." For the most part though, her batting average is pretty strong. Related: Photo Of WWE Star Charlotte Flair Not Wearing Any Pants Goes Viral
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Innovative Tools For Nutrition Education And Climate ActionFORT MYERS, Fla. (AP) — Zavian McLean scored 18 points to lead FGCU and Michael Duax secured the victory with a free throw with 21 seconds left as the Eagles defeated Florida International 60-59 on Sunday. McLean shot 7 for 12, including 2 for 5 from beyond the arc for the Eagles (2-5). Rahmir Barno scored 11 points and added five assists and three steals. Jevin Muniz shot 2 of 7 from the field and 5 for 5 from the line to finish with nine points. Jayden Brewer finished with 18 points and eight rebounds for the Panthers (2-5). Jonathan Aybar added 12 points for Florida International. Dashon Gittens also had seven points and eight rebounds. McLean scored 14 points in the first half and FGCU went into the break trailing 30-29. Barno scored a team-high nine points for FGCU in the second half. FGCU outscored Florida International by two points over the final half. The Associated Press created this story using technology provided by Data Skrive and data from Sportradar .WEST LAYFAYETTE, Ind. (AP) — Trey Kaufman-Renn had 18 points and Myles Colvin and Camden Heide each scored 13 to lead No. 6 Purdue to an 80-45 rout of Marshall on Saturday. Colvin and Heide were making their first starts of the season for Purdue (5-1). Braden Smith, who was averaging 14.6 points, was scoreless on an 0-for-4 shooting day. Smith had a team-high nine assists. Nate Martin led Marshall (3-2) with nine points, playing 24 minutes before fouling out with several minutes left in the game. The Boilermakers shot 55% in the first half to take a 39-24 halftime lead. However, Purdue made only one field goal in the final nine minutes of the first half. Purdue picked up the intensity in the second half, leading by as many as 41 points. The Boilermakers shot 50% for the game and held the Thundering Herd to 30%. No. 10 NORTH CAROLINA 87, HAWAII 69 HONOLULU (AP) — R.J. Davis scored 14 of his 18 points in the first half and No. 10 North Carolina pulled away from Hawaii. Elliot Cadeau had 17 points on 7-of-8 shooting, Seth Trimble scored 11 of his 13 points after halftime and Ian Jackson added 11 for the Tar Heels (3-1). Davis, an All-American guard, moved into fourth place on North Carolina’s all-time career scoring list. He overtook Sam Perkins with his free throw at the 11:59 mark of the first half. Gytis Nemeiksa led Hawaii with 16 points and had 10 rebounds. Akira Jacobs made three 3-pointers and scored 13 points off the bench. Tanner Christensen had 10 points and 10 rebounds and Marcus Green added 10 points for the Rainbow Warriors (4-1). No. 15 MARQUETTE 880, GEORGIA 69 NASSAU, Bahamas (AP) — David Joplin scored a career-high 29 points and made six 3-pointers, Chase Ross had 14 points and five steals, and No. 15 Marquette beat Georgia. Joplin scored five straight Marquette points to begin a 12-3 run that Stevie Mitchell capped by banking in a shot with 1:33 remaining for a 78-66 lead. Mitchell made a steal at the other end to help seal it. Ben Gold scored a career-high 14 points and Kam Jones had 10 points and seven assists for Marquette (6-0). Jones was coming off the program’s third triple-double in more than 100 seasons when he had 17 points, 13 rebounds and 10 assists in 36 minutes against No. 6 Purdue on Tuesday. Gold’s previous high was 12 points at UConn on Feb. 7, 2023, while Joplin’s was 28 at DePaul on Jan. 28, 2023. Blue Cain scored 17 points and Tyrin Lawrence added 15 for Georgia (5-1). Dakota Leffew had 11 and Silas Demary Jr. 10. The Bulldogs turned it over 18 times, leading to 27 points by Marquette. No. 18 CINCINNATI 81, GEORGIA TECH 58 ATLANTA (AP) — Dillon Mitchell had 14 points and 11 rebounds for his first double-double of the season, and No. 18 Cincinnati beat Georgia Tech. Jizzle James and Cole Hickman also scored 14 points apiece for the Bearcats (5-0), who passed the first true test of the young season against their first major conference opponent in the Yellow Jackets of the ACC. Naithan George made three 3-pointers while scoring 13 points for Georgia Tech (2-3). Duncan Powell added 10 points, while leading scorer Baye Ndogo finished with just five points. No. 25 ILLINOIS 87, Md-Eastern Shire 40 CHAMPAIGN, Ill. (AP) — Will Riley scored his 19 points in the second half and No. 25 Illinois beat Maryland Eastern Shore. Kylan Boswell added 13 points, Tomislav Ivisic had 11 and Morez Johnson Jr. finished with 10 for the Illini (4-1), who shot 25% (10 for 40) from 3-point range but committed just nine turnovers. Tre White grabbed 11 rebounds and Kasparas Jakucionis seven for Illinois, which outrebounded the Hawks 59-38. Jalen Ware scored 10 points and Christopher Flippin had 10 rebounds for Maryland Eastern Shore (2-6), which had its lowest point total of the season. The team’s previous low came in 102-63 loss to Vanderbilt on Nov. 4.
Trump team signs agreement to allow Justice to conduct background checks on nominees, staff
Jimmy Carter Dies: Longest-Living U.S. President Was 100
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