Gap
Inc. (NYSE: GPS) today announced that its Board of Directors
approved a new $1 billion share repurchase authorization for the
company’s common stock, superseding the existing authorization dated
February 26, 2015.
“Strong and consistent cash generation is a trademark of our business,
with 2015 free cash flow totaling about $870 million,” said Sabrina
Simmons, chief financial officer of Gap Inc. “We returned about $1.4
billion through share repurchases and dividends in fiscal year 2015,
underscoring our commitment to distributing excess cash to shareholders.”
Please see the reconciliation of free cash flow, a non-GAAP financial
measure, from the GAAP financial measure included in the company’s press
release for its fourth quarter and fiscal year 2015 results issued on
February 25, 2016.
Additionally, the company announced today its intent to maintain an
annual dividend at the current level of $0.92 per share in fiscal year
2016.
The company also announced that its Board of Directors authorized the
first quarter fiscal year 2016 dividend of $0.23 per share, payable on
or after April 27, 2016 to shareholders of record at the close of
business on April 6, 2016.
Forward-Looking Statements
This press release contains 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:
-
future share repurchases;
-
returning excess cash to shareholders; and
-
annual per share dividend.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause the
company’s actual results to differ materially from those in the
forward-looking statements. These factors include, without limitation,
the following:
-
the risk that we or our franchisees will be unsuccessful in gauging
apparel trends and changing consumer preferences;
-
the risk that changes in global economic conditions or consumer
spending patterns could adversely impact our results of operations;
-
the highly competitive nature of our business in the United States and
internationally;
-
the risk that if we are unable to manage our inventory effectively,
our gross margins will be adversely affected;
-
the risks to our efforts to expand internationally, including our
ability to operate under a global brand structure, foreign exchange
fluctuations, and operating in regions where we have less experience;
-
the risks to our business, including our costs and supply chain,
associated with global sourcing and manufacturing;
-
the risk that trade matters could increase the cost or reduce the
supply of apparel available to us and adversely affect our business,
financial condition, and results of operations;
-
the risk that changes in the regulatory or administrative landscape
could adversely affect our financial condition, strategies, and
results of operations;
-
the risk that we do not repurchase some or all of the shares we
anticipate purchasing pursuant to our repurchase program; and
-
the risk that we will not be successful in defending various
proceedings, lawsuits, disputes, claims, and audits.
Additional information regarding factors that could cause results to
differ can be found in the company’s Annual Report on Form 10-K for the
fiscal year ended January 31, 2015, as well as the company’s subsequent
filings with the Securities and Exchange Commission.
These forward-looking statements are based on information as of February
25, 2016. The company assumes no obligation to publicly update or revise
its 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. is a leading global retailer offering clothing, accessories,
and personal care products for men, women, and children under the Gap,
Banana Republic, Old Navy, Athleta, and Intermix brands. Fiscal year
2015 net sales were $15.8 billion. Gap Inc. products are available for
purchase in more than 90 countries worldwide through about 3,300
company-operated stores, over 400 franchise stores, and e-commerce
sites. For more information, please visit www.gapinc.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160225006616/en/
Copyright Business Wire 2016