Gap Inc., a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S. reported the second-quarter fiscal year 2021 diluted earnings per share of $0.67. Excluding charges primarily associated with strategic changes to its operating model in Europe, adjusted earnings per share were $0.70. The company raised its full-year reported diluted earnings per share guidance to be in the range of $1.90 to $2.05, and $2.10 to $2.25 on an adjusted basis.
“Our talented teams delivered our highest second-quarter net sales in over a decade. Our strategy is driving growth as evidenced by continued strength at Old Navy and Athleta, Gap Brand’s second consecutive quarter of positive 2-year comparable sales in North America, and momentum gaining at Banana Republic. Stepped-up marketing investments, improved brand management, and technology enhancements are paying off as our brand power cuts through,” said Sonia Syngal, CEO, Gap Inc. “I look forward to our Integrated Loyalty Program and Old Navy’s inclusive shopping experience, BODEQUALITY, taking hold in the back half, both key components of our Power Plan 2023, and important drivers of long-term sustainable growth.”
Financial Report at a Glance —
- Net sales of $4.2 billion were the highest second quarter sales in over a decade, up 29% versus 2020 and up 5% compared to 2019 pre-COVID levels
- Second quarter comparable sales increased 12% versus 2019
- Reported earnings per share for the quarter were $0.67, and $0.70 on an adjusted basis
- Reported operating margin for the quarter was 9.7%, and 10.2% on an adjusted basis
- Company raising full year outlook for sales, operating margin, and earnings per share
- Sales growth of about thirty percent versus 2020
- Reported operating margin of about 7.0%; Adjusted operating margin of about 7.5%
Reported earnings per share range of $1.90 – $2.05; Adjusted earnings per share range of $2.10 – $2.25
