As part of its annual investor meeting, Gap Inc. GPS today is providing
an overview of its strategic initiatives designed to achieve long-term,
profitable growth across its portfolio of brands. The company also will
highlight its use of technology, innovation and scale as competitive
advantages as it makes progress toward bridging the growing digital world with
its physical stores to create world-class shopping experiences for its
customers.
“We have the world's best collection of American brands coupled with a strong
economic model and runway for global growth,” said Glenn Murphy, chairman and
chief executive officer, Gap Inc. “As the retail landscape evolves, we
continue to deliver on our omni-channel roadmap and focus on owning the
shopping experience of the future.”
The company will discuss its plans to continue driving online growth by
leveraging technology and innovation combined with top talent to deliver new
digital capabilities to customers and make further progress in mobile,
personalization and loyalty programs.
Building upon its current omni-channel suite – including reserve in store,
find in store and ship from store – later this year, the company will be
testing its new order in store capability, which allows customers instant
access to expanded product offerings online. Further, the company is
announcing the expansion of its reserve in store service to all Gap stores in
the United States by the end of the second quarter, enabling online and mobile
shoppers to now reserve items at more than 1,000 Gap and Banana Republic store
locations.
In addition to its industry-leading omni-channel capabilities, the company
will reaffirm its intention to fuel growth and gain share in the $1.4 trillion
global apparel market. Murphy and company executives will discuss plans to
grow through expansion in Asia, as well as in its global outlet, online and
franchise channels. The company also is excited about the long-term potential
of its fast-growing Athleta brand.
Building on Old Navy's recent debut in mainland China and Gap's growing store
base in the world's second largest apparel market, the company will highlight
China as its largest growth initiative where it expects sales to reach $1
billion in three years.
Gap Inc. leaders also will discuss progress against its move to a seamless
inventory model and a more responsive global supply chain, both designed to
fulfill customer demand with increased speed and flexibility, while unlocking
revenue and gross margin potential.
“In the next five years, we plan to leverage our scale to drive our strategic
initiatives – including global growth plans, omni-channel strategies, a
seamless inventory model and fully responsive supply chain. We expect these
initiatives to contribute meaningfully to our revenue growth and operating
profit,” Murphy added.
As it has the last number of years, the company also will underscore its
continued commitment to delivering against long-term financial objectives.
“Our goal is to strike a good balance between growing the top and bottom line,
as well as returning excess cash to shareholders,” said Sabrina Simmons,
executive vice president and chief financial officer, Gap Inc. “Over the past
five years, we have increased revenue $1.6 billion, grown EPS at a 15 percent
compound annual growth rate and returned an average of $1.6 billion in cash
per year via share buybacks and dividends.”
“We have a strong financial track record and we remain focused in our approach
to drive value – by driving revenue growth with healthy merchandise margins
and leveraging expenses to expand operating margin, as measured on a full year
basis,” Simmons added.
In addition to Murphy and Simmons, the following Gap Inc. leaders are slated
to provide updates during today's meeting (in the following order):
* Art Peck, President, Growth, Innovation and Digital
* Sonia Syngal, Executive Vice President, Global Supply Chain
* Tom Keiser, Executive Vice President, Global Product Operations
* Jeff Kirwan, President, Greater China
* Steve Sunnucks, Global President, Gap
* Jack Calhoun, Global President, Banana Republic
* Stefan Larsson, Global President, Old Navy
A live webcast is accessible on Gap Inc.'s Financial News and Events page at
www.gapinc.com/investors from 10:00 a.m. Pacific Time until about 2:30 p.m.
Pacific Time today. In addition, audio of this meeting can be accessed by
calling 1-855-5000-GPS or 855-500-0477 for domestic callers and 913-643-0954
for international callers. The conference passcode is 8783693. A replay of
this event will be available on www.gapinc.com.
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