Gap Inc. (GPS) -Improved inventory creates operational efficiency

Gap Inc. (GPS) (Q1FY24)

Introduction

Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include denim and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls.

The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. The company also provides its products through e-commerce sites.

Highlights

In Q1FY24, the inventories of GPS reduced by 27.5% to $2.3bn from $3.17bn in Q1FY23. This was due to improved supply chain performance, reduced pack and hold inventory, and lower fashion and seasonal basics inventory.

Stock performance

Gap Inc. stock gave returns of 21.8% and 2.8% in the period of three months and one year. The stock has a 52-week high of $15.49 and a 52-week low of $7.22. The stock gave returns of – 19.5% and CAGR of -7% over a period of three years. The stock had a 200-Day Moving Average of $10.93 and a 50-Day Moving Average of $9.15.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 37

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