On August 29, Gap Inc. reported strong results for the second quarter of 2024. The company’s revenue reached $3.7 billion, a 5% increase compared to the same period last year, indicating steady progress in the revival of its key brands.
Old Navy, in particular, saw an 8% growth, while online sales increased by 7%. The gross margin improved by 500 basis points to 42.6%, leading management to raise its outlook for further growth.
CEO Richard Dickson highlighted the success of the brand revitalization strategy, noting that both Old Navy and Gap achieved positive sales growth for four and three consecutive quarters, respectively.
On the other hand, Athleta’s sales declined by 1%, but positive growth is expected in the second half of the year. Banana Republic’s sales were flat, with a focus on improving pricing and product assortment.
Financially, Gap Inc. reported a net income of $206 million, with earnings per share at $0.54. Cash and cash equivalents at the end of the quarter increased by 59% to $2.1 billion, and free cash flow reached approximately $397 million.
Following these results, Gap Inc. plans to continue its brand revitalization efforts to further enhance sales and operating profits for the full year 2024.