FALSE2023Q20000039911February 300000399112023-01-292023-07-2900000399112023-08-18xbrli:shares00000399112023-07-29iso4217:USD00000399112023-01-2800000399112022-07-30iso4217:USDxbrli:shares00000399112023-04-302023-07-2900000399112022-05-012022-07-3000000399112022-01-302022-07-300000039911us-gaap:CommonStockMember2023-04-290000039911us-gaap:AdditionalPaidInCapitalMember2023-04-290000039911us-gaap:RetainedEarningsMember2023-04-290000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-2900000399112023-04-290000039911us-gaap:RetainedEarningsMember2023-04-302023-07-290000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-302023-07-290000039911us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2023-04-302023-07-290000039911us-gaap:CommonStockMember2023-04-302023-07-290000039911us-gaap:AdditionalPaidInCapitalMember2023-04-302023-07-290000039911us-gaap:CommonStockMembergps:StockUnitsMember2023-04-302023-07-290000039911us-gaap:CommonStockMember2023-07-290000039911us-gaap:AdditionalPaidInCapitalMember2023-07-290000039911us-gaap:RetainedEarningsMember2023-07-290000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-290000039911us-gaap:CommonStockMember2022-04-300000039911us-gaap:AdditionalPaidInCapitalMember2022-04-300000039911us-gaap:RetainedEarningsMember2022-04-300000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-3000000399112022-04-300000039911us-gaap:RetainedEarningsMember2022-05-012022-07-300000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-012022-07-300000039911us-gaap:CommonStockMember2022-05-012022-07-300000039911us-gaap:AdditionalPaidInCapitalMember2022-05-012022-07-300000039911us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2022-05-012022-07-300000039911us-gaap:CommonStockMembergps:StockUnitsMember2022-05-012022-07-300000039911us-gaap:CommonStockMember2022-07-300000039911us-gaap:AdditionalPaidInCapitalMember2022-07-300000039911us-gaap:RetainedEarningsMember2022-07-300000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-300000039911us-gaap:CommonStockMember2023-01-280000039911us-gaap:AdditionalPaidInCapitalMember2023-01-280000039911us-gaap:RetainedEarningsMember2023-01-280000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-280000039911us-gaap:RetainedEarningsMember2023-01-292023-07-290000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-292023-07-290000039911us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2023-01-292023-07-290000039911us-gaap:CommonStockMember2023-01-292023-07-290000039911us-gaap:AdditionalPaidInCapitalMember2023-01-292023-07-290000039911us-gaap:CommonStockMembergps:StockUnitsMember2023-01-292023-07-290000039911us-gaap:CommonStockMember2022-01-290000039911us-gaap:AdditionalPaidInCapitalMember2022-01-290000039911us-gaap:RetainedEarningsMember2022-01-290000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-2900000399112022-01-290000039911us-gaap:RetainedEarningsMember2022-01-302022-07-300000039911us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-302022-07-300000039911us-gaap:CommonStockMember2022-01-302022-07-300000039911us-gaap:AdditionalPaidInCapitalMember2022-01-302022-07-300000039911us-gaap:CommonStockMemberus-gaap:EmployeeStockOptionMember2022-01-302022-07-300000039911us-gaap:CommonStockMembergps:StockUnitsMember2022-01-302022-07-300000039911gps:ReconciliationOfCashFlowCashCashEquivAndRestrictedCashToBalanceSheetMember2023-07-290000039911gps:ReconciliationOfCashFlowCashCashEquivAndRestrictedCashToBalanceSheetMember2023-01-280000039911gps:ReconciliationOfCashFlowCashCashEquivAndRestrictedCashToBalanceSheetMember2022-07-300000039911gps:StoreAndFranchiseSalesMember2023-04-302023-07-290000039911gps:StoreAndFranchiseSalesMember2022-05-012022-07-300000039911gps:StoreAndFranchiseSalesMember2023-01-292023-07-290000039911gps:StoreAndFranchiseSalesMember2022-01-302022-07-300000039911gps:OnlineSalesMember2023-04-302023-07-290000039911gps:OnlineSalesMember2022-05-012022-07-300000039911gps:OnlineSalesMember2023-01-292023-07-290000039911gps:OnlineSalesMember2022-01-302022-07-300000039911country:USgps:OldNavyMember2023-04-302023-07-290000039911country:USgps:GapMember2023-04-302023-07-290000039911country:USgps:BananaRepublicMember2023-04-302023-07-290000039911country:USgps:AthletaMember2023-04-302023-07-290000039911country:USgps:OtherentitiesMember2023-04-302023-07-290000039911country:US2023-04-302023-07-290000039911country:CAgps:OldNavyMember2023-04-302023-07-290000039911country:CAgps:GapMember2023-04-302023-07-290000039911gps:BananaRepublicMembercountry:CA2023-04-302023-07-290000039911country:CAgps:AthletaMember2023-04-302023-07-290000039911country:CAgps:OtherentitiesMember2023-04-302023-07-290000039911country:CA2023-04-302023-07-290000039911srt:EuropeMembergps:OldNavyMember2023-04-302023-07-290000039911gps:GapMembersrt:EuropeMember2023-04-302023-07-290000039911gps:BananaRepublicMembersrt:EuropeMember2023-04-302023-07-290000039911srt:EuropeMembergps:AthletaMember2023-04-302023-07-290000039911srt:EuropeMembergps:OtherentitiesMember2023-04-302023-07-290000039911srt:EuropeMember2023-04-302023-07-290000039911srt:AsiaMembergps:OldNavyMember2023-04-302023-07-290000039911gps:GapMembersrt:AsiaMember2023-04-302023-07-290000039911gps:BananaRepublicMembersrt:AsiaMember2023-04-302023-07-290000039911srt:AsiaMembergps:AthletaMember2023-04-302023-07-290000039911srt:AsiaMembergps:OtherentitiesMember2023-04-302023-07-290000039911srt:AsiaMember2023-04-302023-07-290000039911gps:OtherRegionsMembergps:OldNavyMember2023-04-302023-07-290000039911gps:GapMembergps:OtherRegionsMember2023-04-302023-07-290000039911gps:BananaRepublicMembergps:OtherRegionsMember2023-04-302023-07-290000039911gps:OtherRegionsMembergps:AthletaMember2023-04-302023-07-290000039911gps:OtherentitiesMembergps:OtherRegionsMember2023-04-302023-07-290000039911gps:OtherRegionsMember2023-04-302023-07-290000039911gps:OldNavyMember2023-04-302023-07-290000039911gps:GapMember2023-04-302023-07-290000039911gps:BananaRepublicMember2023-04-302023-07-290000039911gps:AthletaMember2023-04-302023-07-290000039911gps:OtherentitiesMember2023-04-302023-07-290000039911country:USgps:OldNavyMember2022-05-012022-07-300000039911country:USgps:GapMember2022-05-012022-07-300000039911country:USgps:BananaRepublicMember2022-05-012022-07-300000039911country:USgps:AthletaMember2022-05-012022-07-300000039911country:USgps:OtherentitiesMember2022-05-012022-07-300000039911country:US2022-05-012022-07-300000039911country:CAgps:OldNavyMember2022-05-012022-07-300000039911country:CAgps:GapMember2022-05-012022-07-300000039911gps:BananaRepublicMembercountry:CA2022-05-012022-07-300000039911country:CAgps:AthletaMember2022-05-012022-07-300000039911country:CAgps:OtherentitiesMember2022-05-012022-07-300000039911country:CA2022-05-012022-07-300000039911srt:EuropeMembergps:OldNavyMember2022-05-012022-07-300000039911gps:GapMembersrt:EuropeMember2022-05-012022-07-300000039911gps:BananaRepublicMembersrt:EuropeMember2022-05-012022-07-300000039911srt:EuropeMembergps:AthletaMember2022-05-012022-07-300000039911srt:EuropeMembergps:OtherentitiesMember2022-05-012022-07-300000039911srt:EuropeMember2022-05-012022-07-300000039911srt:AsiaMembergps:OldNavyMember2022-05-012022-07-300000039911gps:GapMembersrt:AsiaMember2022-05-012022-07-300000039911gps:BananaRepublicMembersrt:AsiaMember2022-05-012022-07-300000039911srt:AsiaMembergps:AthletaMember2022-05-012022-07-300000039911srt:AsiaMembergps:OtherentitiesMember2022-05-012022-07-300000039911srt:AsiaMember2022-05-012022-07-300000039911gps:OtherRegionsMembergps:OldNavyMember2022-05-012022-07-300000039911gps:GapMembergps:OtherRegionsMember2022-05-012022-07-300000039911gps:BananaRepublicMembergps:OtherRegionsMember2022-05-012022-07-300000039911gps:OtherRegionsMembergps:AthletaMember2022-05-012022-07-300000039911gps:OtherentitiesMembergps:OtherRegionsMember2022-05-012022-07-300000039911gps:OtherRegionsMember2022-05-012022-07-300000039911gps:OldNavyMember2022-05-012022-07-300000039911gps:GapMember2022-05-012022-07-300000039911gps:BananaRepublicMember2022-05-012022-07-300000039911gps:AthletaMember2022-05-012022-07-300000039911gps:OtherentitiesMember2022-05-012022-07-300000039911country:USgps:OldNavyMember2023-01-292023-07-290000039911country:USgps:GapMember2023-01-292023-07-290000039911country:USgps:BananaRepublicMember2023-01-292023-07-290000039911country:USgps:AthletaMember2023-01-292023-07-290000039911country:USgps:OtherentitiesMember2023-01-292023-07-290000039911country:US2023-01-292023-07-290000039911country:CAgps:OldNavyMember2023-01-292023-07-290000039911country:CAgps:GapMember2023-01-292023-07-290000039911gps:BananaRepublicMembercountry:CA2023-01-292023-07-290000039911country:CAgps:AthletaMember2023-01-292023-07-290000039911country:CAgps:OtherentitiesMember2023-01-292023-07-290000039911country:CA2023-01-292023-07-290000039911srt:EuropeMembergps:OldNavyMember2023-01-292023-07-290000039911gps:GapMembersrt:EuropeMember2023-01-292023-07-290000039911gps:BananaRepublicMembersrt:EuropeMember2023-01-292023-07-290000039911srt:EuropeMembergps:AthletaMember2023-01-292023-07-290000039911srt:EuropeMembergps:OtherentitiesMember2023-01-292023-07-290000039911srt:EuropeMember2023-01-292023-07-290000039911srt:AsiaMembergps:OldNavyMember2023-01-292023-07-290000039911gps:GapMembersrt:AsiaMember2023-01-292023-07-290000039911gps:BananaRepublicMembersrt:AsiaMember2023-01-292023-07-290000039911srt:AsiaMembergps:AthletaMember2023-01-292023-07-290000039911srt:AsiaMembergps:OtherentitiesMember2023-01-292023-07-290000039911srt:AsiaMember2023-01-292023-07-290000039911gps:OtherRegionsMembergps:OldNavyMember2023-01-292023-07-290000039911gps:GapMembergps:OtherRegionsMember2023-01-292023-07-290000039911gps:BananaRepublicMembergps:OtherRegionsMember2023-01-292023-07-290000039911gps:OtherRegionsMembergps:AthletaMember2023-01-292023-07-290000039911gps:OtherentitiesMembergps:OtherRegionsMember2023-01-292023-07-290000039911gps:OtherRegionsMember2023-01-292023-07-290000039911gps:OldNavyMember2023-01-292023-07-290000039911gps:GapMember2023-01-292023-07-290000039911gps:BananaRepublicMember2023-01-292023-07-290000039911gps:AthletaMember2023-01-292023-07-290000039911gps:OtherentitiesMember2023-01-292023-07-290000039911country:USgps:OldNavyMember2022-01-302022-07-300000039911country:USgps:GapMember2022-01-302022-07-300000039911country:USgps:BananaRepublicMember2022-01-302022-07-300000039911country:USgps:AthletaMember2022-01-302022-07-300000039911country:USgps:OtherentitiesMember2022-01-302022-07-300000039911country:US2022-01-302022-07-300000039911country:CAgps:OldNavyMember2022-01-302022-07-300000039911country:CAgps:GapMember2022-01-302022-07-300000039911gps:BananaRepublicMembercountry:CA2022-01-302022-07-300000039911country:CAgps:AthletaMember2022-01-302022-07-300000039911country:CAgps:OtherentitiesMember2022-01-302022-07-300000039911country:CA2022-01-302022-07-300000039911srt:EuropeMembergps:OldNavyMember2022-01-302022-07-300000039911gps:GapMembersrt:EuropeMember2022-01-302022-07-300000039911gps:BananaRepublicMembersrt:EuropeMember2022-01-302022-07-300000039911srt:EuropeMembergps:AthletaMember2022-01-302022-07-300000039911srt:EuropeMembergps:OtherentitiesMember2022-01-302022-07-300000039911srt:EuropeMember2022-01-302022-07-300000039911srt:AsiaMembergps:OldNavyMember2022-01-302022-07-300000039911gps:GapMembersrt:AsiaMember2022-01-302022-07-300000039911gps:BananaRepublicMembersrt:AsiaMember2022-01-302022-07-300000039911srt:AsiaMembergps:AthletaMember2022-01-302022-07-300000039911srt:AsiaMembergps:OtherentitiesMember2022-01-302022-07-300000039911srt:AsiaMember2022-01-302022-07-300000039911gps:OtherRegionsMembergps:OldNavyMember2022-01-302022-07-300000039911gps:GapMembergps:OtherRegionsMember2022-01-302022-07-300000039911gps:BananaRepublicMembergps:OtherRegionsMember2022-01-302022-07-300000039911gps:OtherRegionsMembergps:AthletaMember2022-01-302022-07-300000039911gps:OtherentitiesMembergps:OtherRegionsMember2022-01-302022-07-300000039911gps:OtherRegionsMember2022-01-302022-07-300000039911gps:OldNavyMember2022-01-302022-07-300000039911gps:GapMember2022-01-302022-07-300000039911gps:BananaRepublicMember2022-01-302022-07-300000039911gps:AthletaMember2022-01-302022-07-300000039911gps:OtherentitiesMember2022-01-302022-07-300000039911us-gaap:EmployeeSeveranceMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-04-302023-07-290000039911us-gaap:EmployeeSeveranceMemberus-gaap:OperatingExpenseMember2023-04-302023-07-290000039911us-gaap:EmployeeSeveranceMember2023-04-302023-07-290000039911us-gaap:EmployeeSeveranceMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-01-292023-07-290000039911us-gaap:EmployeeSeveranceMemberus-gaap:OperatingExpenseMember2023-01-292023-07-290000039911us-gaap:EmployeeSeveranceMember2023-01-292023-07-290000039911us-gaap:OtherRestructuringMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-04-302023-07-290000039911us-gaap:OperatingExpenseMemberus-gaap:OtherRestructuringMember2023-04-302023-07-290000039911us-gaap:OtherRestructuringMember2023-04-302023-07-290000039911us-gaap:OtherRestructuringMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-01-292023-07-290000039911us-gaap:OperatingExpenseMemberus-gaap:OtherRestructuringMember2023-01-292023-07-290000039911us-gaap:OtherRestructuringMember2023-01-292023-07-290000039911gps:CostOfGoodsSoldAndOccupancyExpenseMember2023-04-302023-07-290000039911us-gaap:OperatingExpenseMember2023-04-302023-07-290000039911gps:CostOfGoodsSoldAndOccupancyExpenseMember2023-01-292023-07-290000039911us-gaap:OperatingExpenseMember2023-01-292023-07-290000039911us-gaap:EmployeeSeveranceMember2023-01-280000039911us-gaap:OtherRestructuringMember2023-01-280000039911us-gaap:EmployeeSeveranceMembergps:ChargesThatWillBeSettledWithCashPaymentsMember2023-01-292023-04-290000039911us-gaap:OtherRestructuringMembergps:ChargesThatWillBeSettledWithCashPaymentsMember2023-01-292023-04-290000039911gps:ChargesThatWillBeSettledWithCashPaymentsMember2023-01-292023-04-290000039911us-gaap:EmployeeSeveranceMember2023-01-292023-04-290000039911us-gaap:OtherRestructuringMember2023-01-292023-04-2900000399112023-01-292023-04-290000039911us-gaap:EmployeeSeveranceMember2023-04-290000039911us-gaap:OtherRestructuringMember2023-04-290000039911us-gaap:EmployeeSeveranceMembergps:ChargesThatWillBeSettledWithCashPaymentsMember2023-04-302023-07-290000039911us-gaap:OtherRestructuringMembergps:ChargesThatWillBeSettledWithCashPaymentsMember2023-04-302023-07-290000039911gps:ChargesThatWillBeSettledWithCashPaymentsMember2023-04-302023-07-290000039911us-gaap:EmployeeSeveranceMember2023-07-290000039911us-gaap:OtherRestructuringMember2023-07-29xbrli:pure0000039911gps:A2029NotesMember2023-07-290000039911gps:A2029NotesMember2023-01-280000039911gps:A2029NotesMember2022-07-300000039911gps:A2031NotesMember2023-07-290000039911gps:A2031NotesMember2023-01-280000039911gps:A2031NotesMember2022-07-300000039911gps:A2029NotesMember2023-01-292023-07-290000039911gps:A2031NotesMember2023-01-292023-07-290000039911gps:PreviousABLFacilityMembergps:ABLFacilityMember2022-07-300000039911gps:ABLFacilityMember2023-07-290000039911gps:ABLFacilityMember2023-01-280000039911gps:ABLFacilityMember2022-07-300000039911gps:ABLFacilityMember2023-05-152023-05-150000039911gps:ABLFacilityMember2023-06-142023-06-140000039911gps:CreditAdjustmentSpreadMembergps:ABLFacilityMember2023-01-292023-07-290000039911gps:ABLFacilityMember2023-01-292023-07-290000039911us-gaap:FairValueInputsLevel1Member2023-07-290000039911us-gaap:FairValueInputsLevel2Member2023-07-290000039911us-gaap:FairValueInputsLevel3Member2023-07-290000039911us-gaap:FairValueInputsLevel1Member2023-01-280000039911us-gaap:FairValueInputsLevel2Member2023-01-280000039911us-gaap:FairValueInputsLevel3Member2023-01-280000039911us-gaap:FairValueInputsLevel1Member2022-07-300000039911us-gaap:FairValueInputsLevel2Member2022-07-300000039911us-gaap:FairValueInputsLevel3Member2022-07-300000039911us-gaap:CashFlowHedgingMember2023-07-290000039911us-gaap:CashFlowHedgingMember2023-01-280000039911us-gaap:CashFlowHedgingMember2022-07-300000039911us-gaap:NondesignatedMember2023-07-290000039911us-gaap:NondesignatedMember2023-01-280000039911us-gaap:NondesignatedMember2022-07-300000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2023-07-290000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2023-01-280000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2022-07-300000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherAssetsMember2023-07-290000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherAssetsMember2023-01-280000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherAssetsMember2022-07-300000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMembergps:AccruedLiabilitiesCurrentMember2023-07-290000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMembergps:AccruedLiabilitiesCurrentMember2023-01-280000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMembergps:AccruedLiabilitiesCurrentMember2022-07-300000039911gps:LeaseIncentiveAndOtherLongTermLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2023-07-290000039911gps:LeaseIncentiveAndOtherLongTermLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2023-01-280000039911gps:LeaseIncentiveAndOtherLongTermLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMember2022-07-300000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2023-07-290000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2023-01-280000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2022-07-300000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMembergps:AccruedLiabilitiesCurrentMember2023-07-290000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMembergps:AccruedLiabilitiesCurrentMember2023-01-280000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMembergps:AccruedLiabilitiesCurrentMember2022-07-300000039911us-gaap:ForeignExchangeContractMember2023-07-290000039911us-gaap:ForeignExchangeContractMember2023-01-280000039911us-gaap:ForeignExchangeContractMember2022-07-300000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-04-302023-07-290000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2023-04-302023-07-290000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2022-05-012022-07-300000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2022-05-012022-07-300000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-04-302023-07-290000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2023-04-302023-07-290000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2022-05-012022-07-300000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2022-05-012022-07-300000039911gps:CostOfGoodsSoldAndOccupancyExpenseMember2022-05-012022-07-300000039911us-gaap:OperatingExpenseMember2022-05-012022-07-300000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-01-292023-07-290000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2023-01-292023-07-290000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2022-01-302022-07-300000039911us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2022-01-302022-07-300000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2023-01-292023-07-290000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2023-01-292023-07-290000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMembergps:CostOfGoodsSoldAndOccupancyExpenseMember2022-01-302022-07-300000039911us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OperatingExpenseMember2022-01-302022-07-300000039911gps:CostOfGoodsSoldAndOccupancyExpenseMember2022-01-302022-07-300000039911us-gaap:OperatingExpenseMember2022-01-302022-07-3000000399112019-02-26gps:Segment0000039911gps:OldNavyMexicoMember2022-07-300000039911us-gaap:PropertySubjectToOperatingLeaseMembergps:OldNavyMexicoMember2022-07-300000039911us-gaap:PropertyPlantAndEquipmentMembergps:OldNavyMexicoMember2022-07-300000039911us-gaap:InventoriesMembergps:OldNavyMexicoMember2022-07-300000039911us-gaap:PropertySubjectToOperatingLeaseMembergps:OldNavyMexicoMember2022-07-300000039911gps:DistributionCenterMember2022-07-300000039911us-gaap:CollateralPledgedMember2022-07-300000039911us-gaap:CollateralPledgedMember2023-07-290000039911us-gaap:CollateralPledgedMember2023-01-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 29, 2023
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number 1-7562
THE GAP, INC.
(Exact name of registrant as specified in its charter)
Delaware 94-1697231
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
Two Folsom Street
San Francisco, California 94105
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (415427-0100

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.05 par valueGPSThe New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes   No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
The number of shares of the registrant’s common stock outstanding as of August 18, 2023 was 369,880,645.



FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q 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, but are not limited to, statements regarding the following:
the potential impact of global economic conditions on the assumptions and estimates used when preparing the Condensed Consolidated Financial Statements;
the impact of recent accounting pronouncements;
the timing of revenue recognition of upfront payments related to our new credit card program agreements with Barclays and Mastercard;
the timing of recognition in income of unrealized gains and losses from designated cash flow hedges;
the impact of losses due to indemnification obligations on the Condensed Consolidated Financial Statements;
the outcome of proceedings, lawsuits, disputes, and claims, including the impact of such actions on the Condensed Consolidated Financial Statements and our financial results;
our arrangements with third parties to operate stores and websites selling apparel and related products under our brand names;
our plans to rationalize the Gap and Banana Republic store fleet by reducing the number of Gap and Banana Republic stores in North America;
managing inventory to support a healthy merchandise margin;
reducing and optimizing our fixed cost structure to improve profitability and manage through current macroeconomic challenges;
driving sales through assortment improvements and a balanced and relevant category mix;
driving creative excellence and delivering product that offers value to customers through a combination of fit, quality, brand, and price;
prioritizing asset-light growth through licensing, online, and franchise partnerships globally;
optimizing investments in our four purpose-led lifestyle brands to drive relevance and gain market share;
attracting and retaining strong talent in our businesses and functions;
continuing to integrate social and environmental sustainability into business practices to support long-term growth;
our ability to supplement near-term liquidity, if necessary, with the ABL Facility or other available market instruments;
the impact of seasonality and global economic conditions on certain asset and liability accounts as well as cash inflows and outflows;
the ability of our cash flows from our operations, current balances of cash and cash equivalents, the Senior Notes and the ABL Facility, and other available market instruments to support our business operations and liquidity requirements;
the importance of our sustained ability to generate free cash flow, which is a non-GAAP financial measure and is defined and discussed in more detail in Item 2 of Part 1 of this Form 10-Q below;
our dividend policy, including the potential timing and amounts of future dividends;
the impact of reductions in our credit ratings on our interest expense on future borrowings; and
the impact of changes in internal control over financial reporting, including the impact of our restructuring plan on our internal control over financial reporting.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following:
the overall global economic and geopolitical environment and the impact on consumer spending patterns;
the risk that we or our franchisees may be unsuccessful in gauging apparel trends and changing consumer preferences or responding with sufficient lead time;
the risk that we fail to maintain, enhance, and protect our brand image and reputation;
the highly competitive nature of our business in the United States and internationally;
the risk that restructuring our business may not generate the intended benefits and projected cost savings to the extent or on the timeline as expected;



the risk that we fail to manage key executive succession and retention and to continue to attract and retain qualified personnel;
the risk that we may be unable to manage or protect our inventory effectively and the resulting impact on our gross margins, sales and results of operations;
the risk that inflationary pressures continue to negatively impact gross margins or that we are unable to pass along price increases;
the risk that our investments in customer, digital, and omni-channel shopping initiatives may not deliver the results we anticipate;
the risks to our business, including our costs and supply chain, associated with global sourcing and manufacturing;
the risks to our reputation or operations associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct;
the risk of data or other security breaches or vulnerabilities that may result in increased costs, violations of law, significant legal and financial exposure, and a loss of confidence in our security measures;
the risk that failures of, or updates or changes to, our IT systems may disrupt our operations;
the risk that our franchisees and licensees could impair the value of our brands or fail to make payments for which we are liable;
natural disasters, public health crises, political crises, negative global climate patterns, or other catastrophic events;
the ongoing conflict between Russia and Ukraine and the impact on global market stability;
engaging in or seeking to engage in strategic transactions that are subject to various risks and uncertainties;
the risk that our efforts to expand internationally may not be successful;
the risk that trade matters could increase the cost or reduce the supply of apparel available to us;
the risk of foreign currency exchange rate fluctuations;
the risk that our comparable sales and margins may experience fluctuations, that the seasonality of our business may experience changes, or that we may fail to meet financial market expectations;
reductions in income and cash flow from our credit card arrangement related to our private label and co-branded credit cards;
the risk that we or our franchisees may be unsuccessful in identifying, negotiating, and securing new store locations and renewing, modifying, or terminating leases for existing store locations effectively;
the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets;
the adverse effects of climate change on our operations and those of our franchisees, vendors and other business partners;
the risk that we will not be successful in defending various proceedings, lawsuits, disputes, and claims;
our failure to comply with applicable laws and regulations and changes in the regulatory or administrative landscape;
our failure to satisfy regulations and market expectations related to our ESG initiatives;
the risk that worsening global economic and geopolitical conditions could result in changes to the assumptions and estimates used when preparing the Condensed Consolidated Financial Statements;
the risk that changes in our business structure, our performance or our industry could result in reductions in our pre-tax income or utilization of existing tax carryforwards in future periods, and require additional deferred tax valuation allowances;
the risk that changes in the geographic mix and level of income or losses, the expected or actual outcome of audits, changes in deferred tax valuation allowances, and new legislation could impact our effective tax rate;
the risk that our level of indebtedness may impact our ability to operate and expand our business;
the risk that we and our subsidiaries may be unable to meet our obligations under our indebtedness agreements; and
the risk that the adoption of new accounting pronouncements will impact future results.
Additional information regarding factors that could cause results to differ can be found in our Annual Report on Form 10-K for the fiscal year ended January 28, 2023 and our other filings with the U.S. Securities and Exchange Commission.



Future economic and industry trends that could potentially impact net sales and profitability are difficult to predict. These forward-looking statements are based on information as of August 25, 2023. We assume no obligation to publicly update or revise our forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
We suggest that this document be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended January 28, 2023.



THE GAP, INC.
TABLE OF CONTENTS
 
 Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.



PART I – FINANCIAL INFORMATION
Item 1.     Financial Statements.
THE GAP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
($ and shares in millions except par value)July 29,
2023
January 28,
2023
July 30,
2022
ASSETS
Current assets:
Cash and cash equivalents$1,350 $1,215 $708 
Merchandise inventory2,226 2,389 3,135 
Other current assets663 1,013 1,106 
Total current assets4,239 4,617 4,949 
Property and equipment, net of accumulated depreciation of $4,841, $4,837, and $4,950
2,595 2,688 2,809 
Operating lease assets3,113 3,173 3,532 
Other long-term assets903 908 881 
Total assets$10,850 $11,386 $12,171 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,406 $1,320 $1,640 
Accrued expenses and other current liabilities1,007 1,219 1,216 
Current portion of operating lease liabilities578 667 717 
Income taxes payable16 50 41 
Total current liabilities3,007 3,256 3,614 
Long-term liabilities:
Revolving credit facility150 350 350 
Long-term debt1,487 1,486 1,485 
Long-term operating lease liabilities3,433 3,517 3,857 
Other long-term liabilities 510 544 560 
Total long-term liabilities5,580 5,897 6,252 
Commitments and contingencies (see Note 10)
Stockholders’ equity:
Common stock $0.05 par value
Authorized 2,300 shares for all periods presented; Issued and Outstanding 369, 366, and 364 shares
18 18 18 
Additional paid-in capital73 27  
Retained earnings2,128 2,140 2,241 
Accumulated other comprehensive income 44 48 46 
Total stockholders’ equity2,263 2,233 2,305 
Total liabilities and stockholders’ equity$10,850 $11,386 $12,171 
See Accompanying Notes to Condensed Consolidated Financial Statements
1


THE GAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 13 Weeks Ended26 Weeks Ended
($ and shares in millions except per share amounts)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Net sales$3,548 $3,857 $6,824 $7,334 
Cost of goods sold and occupancy expenses2,215 2,527 4,277 4,908 
Gross profit1,333 1,330 2,547 2,426 
Operating expenses1,227 1,358 2,451 2,651 
Operating income (loss)106 (28)96 (225)
Interest expense15 21 38 41 
Interest income(17)(1)(30)(2)
Income (loss) before income taxes108 (48)88 (264)
Income tax expense (benefit)(9)1 (11)(53)
Net income (loss)$117 $(49)$99 $(211)
Weighted-average number of shares - basic369 367 368 369 
Weighted-average number of shares - diluted371 367 372 369 
Earnings (loss) per share - basic$0.32 $(0.13)$0.27 $(0.57)
Earnings (loss) per share - diluted$0.32 $(0.13)$0.27 $(0.57)
See Accompanying Notes to Condensed Consolidated Financial Statements
2


THE GAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
 
 13 Weeks Ended26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Net income (loss)$117 $(49)$99 $(211)
Other comprehensive income (loss), net of tax
Foreign currency translation(3)4 (4)7 
Change in fair value of derivative financial instruments, net of tax expense of $, $, $2, $2
(2)2 6 9 
Reclassification adjustment for gains on derivative financial instruments, net of (tax expense) tax benefit of $(1), $1, $(1), $
(4)(6)(6)(8)
Other comprehensive income (loss), net of tax(9) (4)8 
Comprehensive income (loss)$108 $(49)$95 $(203)
See Accompanying Notes to Condensed Consolidated Financial Statements
3


THE GAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
 Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
 
($ and shares in millions except per share amounts)SharesAmountTotal
Balance as of April 29, 2023368 $18 $47 $2,067 $53 $2,185 
Net income for the 13 weeks ended July 29, 2023117 117 
Other comprehensive loss, net of tax
Foreign currency translation (3)(3)
Change in fair value of derivative financial instruments(2)(2)
Amounts reclassified from accumulated other comprehensive income(4)(4)
Issuance of common stock related to stock options and employee stock purchase plans1  6 6 
Issuance of common stock and withholding tax payments related to vesting of stock units  (1)(1)
Share-based compensation, net of forfeitures21 21 
Common stock dividends declared and paid ($0.15 per share)
(56)(56)
Balance as of July 29, 2023369 $18 $73 $2,128 $44 $2,263 
Balance as of April 30, 2022369 $19 $ $2,389 $46 $2,454 
Net loss for the 13 weeks ended July 30, 2022(49)(49)
Other comprehensive income (loss), net of tax
Foreign currency translation 4 4 
Change in fair value of derivative financial instruments2 2 
Amounts reclassified from accumulated other comprehensive income(6)(6)
Repurchases and retirement of common stock(5)(1)(12)(44)(57)
Issuance of common stock related to stock options and employee stock purchase plans  8 8 
Issuance of common stock and withholding tax payments related to vesting of stock units  (1)(1)
Share-based compensation, net of forfeitures5 5 
Common stock dividends declared and paid ($0.15 per share)
(55)(55)
Balance as of July 30, 2022364 $18 $ $2,241 $46 $2,305 
    
See Accompanying Notes to Condensed Consolidated Financial Statements





4


THE GAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
($ and shares in millions except per share amounts)SharesAmountTotal
Balance as of January 28, 2023366 $18 $27 $2,140 $48 $2,233 
Net income for the 26 weeks ended July 29, 20239999 
Other comprehensive income (loss), net of tax

Foreign currency translation(4)(4)
Change in fair value of derivative financial instruments6 6 
Amounts reclassified from accumulated other comprehensive income(6)(6)
Issuance of common stock related to stock options and employee stock purchase plans1  13 13 
Issuance of common stock and withholding tax payments related to vesting of stock units2  (11)(11)
Share-based compensation, net of forfeitures44 44 
Common stock dividends declared and paid ($0.30 per share)
(111)(111)
Balance as of July 29, 2023369$18 $73 $2,128 $44 $2,263 
Balance as of January 29, 2022371 $19 $43 $2,622 $38 $2,722 
Net loss for the 26 weeks ended July 30, 2022(211)(211)
Other comprehensive income (loss), net of tax
Foreign currency translation7 7 
Change in fair value of derivative financial instruments9 9 
Amounts reclassified from accumulated other comprehensive income(8)(8)
Repurchases and retirement of common stock(9)(1)(51)(59)(111)
Issuance of common stock related to stock options and employee stock purchase plans1  15 15 
Issuance of common stock and withholding tax payments related to vesting of stock units1  (15)(15)
Share-based compensation, net of forfeitures8 8 
Common stock dividends declared and paid ($0.30 per share)
(111)(111)
Balance as of July 30, 2022364 $18 $ $2,241 $46 $2,305 
See Accompanying Notes to Condensed Consolidated Financial Statements
5


THE GAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
 26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
Cash flows from operating activities:
Net income (loss)$99 $(211)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization267 262 
Share-based compensation44 6 
Impairment of store assets2 3 
Amortization of debt issuance costs2 4 
Non-cash and other items28 (3)
Loss on divestiture activity 35 
Gain on sale of building(47) 
Deferred income taxes5 (11)
Changes in operating assets and liabilities:
Merchandise inventory160 (140)
Other current assets and other long-term assets64 17 
Accounts payable104 (292)
Accrued expenses and other current liabilities(76)(191)
Income taxes payable, net of receivables and other tax-related items5 372 
Other long-term liabilities(16)4 
Operating lease assets and liabilities, net(113)(62)
Net cash provided by (used for) operating activities528 (207)
Cash flows from investing activities:
Purchases of property and equipment(199)(406)
Net proceeds from sale of building76 333 
Net proceeds from divestiture activity11  
Net cash used for investing activities(112)(73)
Cash flows from financing activities:
Proceeds from revolving credit facility 350 
Repayments of revolving credit facility(200) 
Payments for debt issuance costs (6)
Proceeds from issuances under share-based compensation plans13 15 
Withholding tax payments related to vesting of stock units(11)(15)
Repurchases of common stock (111)
Cash dividends paid(111)(111)
Net cash provided by (used for) financing activities(309)122 
Effect of foreign exchange rate fluctuations on cash, cash equivalents, and restricted cash(2)(9)
Net increase (decrease) in cash, cash equivalents, and restricted cash105 (167)
Cash, cash equivalents, and restricted cash at beginning of period1,273 902 
Cash, cash equivalents, and restricted cash at end of period$1,378 $735 
Supplemental disclosure of cash flow information:
Cash paid for interest during the period$40 $38 
Cash paid for income taxes during the period, net of refunds$(20)$(408)
See Accompanying Notes to Condensed Consolidated Financial Statements
6


THE GAP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Accounting Policies
Basis of Presentation
In the opinion of The Gap, Inc. (the “Company,” “we,” and “our”) management, the accompanying unaudited Condensed Consolidated Financial Statements contain all normal and recurring adjustments (except as otherwise disclosed) considered necessary to present fairly our financial position, results of operations, comprehensive income (loss), stockholders' equity, and cash flows as of July 29, 2023 and July 30, 2022 and for all periods presented. The Condensed Consolidated Balance Sheet as of January 28, 2023 has been derived from our audited financial statements.
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted from these interim financial statements, although the Company believes that the disclosures made are adequate to make the information not misleading. We suggest that you read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 28, 2023.
The results of operations for the 13 and 26 weeks ended July 29, 2023 are not necessarily indicative of the operating results that may be expected for the 53-week period ending February 3, 2024.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Additionally, these estimates and assumptions may change as a result of the impact of global economic conditions such as the uncertainty regarding global inflationary pressures, the Russia-Ukraine crisis, distress in global credit and banking markets, and new legislation. We will continue to consider the impact of the global economic conditions on the assumptions and estimates used when preparing these Condensed Consolidated Financial Statements including inventory valuation, income taxes and valuation allowances, sales return and bad debt allowances, and the impairment of long-lived assets. If the global economic conditions worsen beyond what is currently estimated by management, such future changes may have an adverse impact on the Company's results of operations and financial position.
Restricted Cash
As of July 29, 2023, restricted cash primarily included consideration that serves as collateral for certain obligations occurring in the normal course of business and our insurance obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within our Condensed Consolidated Balance Sheets to the total shown on our Condensed Consolidated Statements of Cash Flows:
($ in millions)July 29,
2023
January 28,
2023
July 30,
2022
Cash and cash equivalents, per Condensed Consolidated Balance Sheets$1,350 $1,215 $708 
Restricted cash included in other current assets 32  
Restricted cash included in other long-term assets28 26 27 
Total cash, cash equivalents, and restricted cash, per Condensed Consolidated Statements of Cash Flows$1,378 $1,273 $735 
Accounting Pronouncements
Except as noted below, the Company has considered all recent accounting pronouncements and concluded that there are no recent accounting pronouncements that may have a material impact on our Condensed Consolidated Financial Statements and disclosures, based on current information.
ASU No. 2022-04, Disclosure of Supplier Finance Program Obligations
In September 2022, the Financial Accounting Standards Board issued accounting standards update ("ASU") No. 2022-04, Disclosure of Supplier Finance Program Obligations. The ASU is intended to enhance the transparency of the use of supplier finance programs by requiring that the buyers in those programs provide additional disclosures about the program’s nature and potential magnitude, including a rollforward of the obligations and activity during the period. The ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2022, except for the rollforward information, which is effective prospectively for fiscal years beginning after December 15, 2023. The ASU does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. We adopted this ASU on January 29, 2023. See Note 13 of Notes to Condensed Consolidated Financial Statements for information regarding our supply chain finance program.
Note 2. Revenue
Disaggregation of Net Sales
We disaggregate our net sales by channel and also by brand and region. Net sales by region are allocated based on the location of the store where the customer paid for and received the merchandise or the distribution center or store from which the products were shipped.
Net sales disaggregated by channel are as follows:
13 Weeks Ended26 Weeks Ended
($ in millions)July 29, 2023July 30, 2022July 29, 2023July 30, 2022
Store and franchise sales$2,387 $2,553 $4,440 $4,690 
Online sales (1)1,161 1,304 2,384 2,644 
Total net sales$3,548 $3,857 $6,824 $7,334 
__________
(1)Online sales primarily include sales originating from our online channel including those that are picked up or shipped from stores and net sales from revenue-generating strategic initiatives.

7


Net sales disaggregated by brand and region are as follows:
($ in millions)Old Navy GlobalGap GlobalBanana Republic GlobalAthleta GlobalOther (2)Total
13 Weeks Ended July 29, 2023
U.S. (1)$1,777 $542 $415 $327 $11 $3,072 
Canada165 76 44 13  298 
Europe1 29    30 
Asia 77 14   91 
Other regions18 31 7 1  57 
Total$1,961 $755 $480 $341 $11 $3,548 
($ in millions)Old Navy GlobalGap GlobalBanana Republic GlobalAthleta GlobalOther (2)Total
13 Weeks Ended July 30, 2022
U.S. (1)$1,880 $565 $460 $335 $3 $3,243 
Canada183 82 53 7  325 
Europe 51 2   53 
Asia1 141 18   160 
Other regions26 42 6 2  76 
Total$2,090 $881 $539 $344 $3 $3,857 
($ in millions)Old Navy GlobalGap GlobalBanana Republic GlobalAthleta GlobalOther (2)Total
26 Weeks Ended July 29, 2023
U.S. (1)$3,436 $1,038 $789 $636 $14 $5,913 
Canada310 137 80 23  550 
Europe1 58 1 1  61 
Asia1 154 28   183 
Other regions41 60 14 2  117 
Total$3,789 $1,447 $912 $662 $14 $6,824 
($ in millions)Old Navy GlobalGap GlobalBanana Republic GlobalAthleta GlobalOther (2)Total
26 Weeks Ended July 30, 2022
U.S. (1)$3,553 $1,062 $876 $679 $6 $6,176 
Canada330 146 96 16  588 
Europe1 105 3 2  111 
Asia1 282 34   317 
Other regions46 77 12 7  142 
Total$3,931 $1,672 $1,021 $704 $6 $7,334 
__________
(1)U.S. includes the United States and Puerto Rico.
(2)Primarily consists of net sales from revenue-generating strategic initiatives.
Deferred Revenue
We defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards, licensing agreements, outstanding loyalty points, and reimbursements of loyalty program discounts associated with our credit card agreement. For the 13 weeks ended July 29, 2023, the opening balance of deferred revenue for these obligations was $334 million, of which $120 million was recognized as revenue during the period. For the 26 weeks ended July 29, 2023, the opening balance of deferred revenue for these obligations was $354 million, of which $191 million was recognized as revenue during the period. The closing balance of deferred revenue for these obligations was $327 million as of July 29, 2023.
8


For the 13 weeks ended July 30, 2022, the opening balance of deferred revenue for these obligations was $323 million, of which $125 million was recognized as revenue during the period. For the 26 weeks ended July 30, 2022, the opening balance of deferred revenue for these obligations was $345 million, of which $185 million was recognized as revenue during the period. The closing balance of deferred revenue for these obligations was $321 million as of July 30, 2022.
In April 2021, the Company entered into agreements with Barclays and Mastercard relating to a new long-term credit card program. In May 2022, the Company launched the new credit card program with Barclays and Mastercard and accordingly, our prior credit card program with Synchrony Financial was discontinued. The Company received an upfront payment of $60 million related to the new agreements prior to the program launch, which is being recognized as revenue over the term of the agreements.
Note 3. Restructuring
On April 25, 2023, the Company's management committed to a restructuring plan (the "Plan") as part of the Company's previously announced efforts to simplify and optimize its operating model and structure. The Plan includes a reduction in workforce of approximately 1,800 employees, primarily in headquarters locations. The actions associated with the reduction of the Company's workforce under the Plan have been substantially completed as of July 29, 2023.
In connection with the Plan, the Company incurred $13 million and $88 million in pre-tax restructuring costs during the 13 and 26 weeks ended July 29, 2023, respectively. The costs incurred in connection with the Plan are as follows:
13 Weeks Ended
July 29, 2023
26 Weeks Ended
July 29, 2023
($ in millions)Cost of Goods Sold and Occupancy ExpensesOperating ExpensesTotal CostsCost of Goods Sold and Occupancy ExpensesOperating ExpensesTotal Costs
Employee-related costs$ $3 $3 $4 $61 $65 
Consulting and other associated costs 10 10  23 23 
Total restructuring costs$ $13 $13 $4 $84 $88 
The following table summarizes restructuring costs that will be settled with cash payments and the related liability balances as of July 29, 2023, which are primarily included in accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheet:
($ in millions)Employee-Related CostsConsulting and Other Associated CostsTotal
Balance at January 28, 2023$ $ $ 
13 Weeks Ended April 29, 2023
Provision62 13 75 
Cash payments (10)(10)
Balance at April 29, 202362 3 65 
13 Weeks Ended July 29, 2023
Provision3 10 13 
Cash payments(45)(7)(52)
Balance at July 29, 2023$20 $6 $26 
Note 4. Income Taxes
The effective income tax rate was negative 8.3 percent for the 13 weeks ended July 29, 2023, compared with negative 2.1 percent for the 13 weeks ended July 30, 2022. The effective income tax rate was negative 12.5 percent for the 26 weeks ended July 29, 2023, compared with 20.1 percent for the 26 weeks ended July 30, 2022. The decrease in the effective tax rate for the 13 and 26 weeks ended July 29, 2023 compared with the 13 and 26 weeks ended July 30, 2022 is primarily due to tax benefits recognized from a U.S. transfer pricing settlement related to our sourcing activities and changes in the amount and jurisdictional mix of pretax earnings, partially offset by changes in valuation allowances in the prior year.
9


Note 5. Debt and Credit Facilities
Long-term debt recorded on the Condensed Consolidated Balance Sheets consists of the following:
($ in millions)July 29,
2023
January 28,
2023
July 30,
2022
2029 Notes$750 $750 $750 
2031 Notes750 750 750 
Less: Unamortized debt issuance costs(13)(14)(15)
Total long-term debt$1,487 $1,486 $1,485 
The scheduled maturity of the Senior Notes is as follows:
Scheduled Maturity ($ in millions)PrincipalInterest RateInterest Payments
October 1, 2029 (1)$750 3.625 %Semi-Annual
October 1, 2031 (2)750 3.875 %Semi-Annual
Total issuance$1,500 
__________
(1)Includes an option to redeem the 2029 Notes, in whole or in part at any time, subject to a make-whole premium, prior to October 1, 2024. On or after October 1, 2024, includes an option to redeem the 2029 Notes, in whole or in part at any time, at stated redemption prices.
(2)Includes an option to redeem the 2031 Notes, in whole or in part at any time, subject to a make-whole premium, prior to October 1, 2026. On or after October 1, 2026, includes an option to redeem the 2031 Notes, in whole or in part at any time, at stated redemption prices.
On September 27, 2021, we completed the issuance of $1.5 billion aggregate principal amount of 3.625 percent senior notes due 2029 (“2029 Notes”) and 3.875 percent senior notes due 2031 (“2031 Notes”) (the 2029 Notes and the 2031 Notes, collectively, the “Senior Notes”). As of July 29, 2023, the aggregate estimated fair value of the Senior Notes was $1.10 billion and was based on the quoted market prices for each of the Senior Notes (level 1 inputs) as of the last business day of the fiscal quarter. The aggregate principal amount of the Senior Notes is recorded in long-term debt on the Condensed Consolidated Balance Sheets, net of the unamortized debt issuance costs.
On May 7, 2020, we entered into a senior secured asset-based revolving credit agreement (the "ABL Facility"), which was previously scheduled to expire in May 2023. On July 13, 2022, we entered into an amendment and restatement of the ABL Facility. Among other changes, the amendment and restatement extended the maturity of the ABL Facility to July 2027, increased the borrowing capacity from $1.8675 billion to $2.2 billion, modified the reference rate from the London Interbank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"), and reduced the applicable interest rate margin. Following the amendment and restatement, the ABL Facility generally bears interest at a per annum rate based on SOFR (subject to a zero floor) plus a margin, depending on borrowing base availability. The ABL Facility is available for working capital, capital expenditures, and other general corporate purposes.
As of January 28, 2023 and July 30, 2022, the Company's outstanding borrowing under the ABL Facility was $350 million. On May 15, 2023, the Company repaid $100 million of the outstanding borrowing under the ABL Facility. On June 14, 2023, the Company repaid an additional $100 million of the outstanding borrowing under the ABL Facility. As a result, the Company's outstanding borrowing under the ABL Facility was reduced to $150 million as of July 29, 2023. The variable interest rate on the drawn amount is adjusted SOFR (calculated to include a 0.10% credit adjustment spread) plus a margin of 1.25%. The remaining borrowing was recorded in long-term liabilities on the Condensed Consolidated Balance Sheet as of July 29, 2023.
We also have the ability to issue letters of credit on our ABL Facility. As of July 29, 2023, we had $49 million in standby letters of credit issued under the ABL Facility.
Note 6. Fair Value Measurements
The Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company categorizes financial assets and liabilities recorded at fair value based upon a three-level hierarchy that considers the related valuation techniques.
There were no material purchases, sales, issuances, or settlements related to recurring level 3 measurements for the 13 and 26 weeks ended July 29, 2023 or July 30, 2022.
10


Financial assets and liabilities measured at fair value on a recurring basis and cash equivalents held at amortized cost are as follows:
  Fair Value Measurements at Reporting Date Using
($ in millions)July 29, 2023Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents$1 $ $1 $ 
Derivative financial instruments11  11  
Deferred compensation plan assets36 36   
Other assets4   4 
Total$52 $36 $12 $4 
Liabilities:
Derivative financial instruments$9 $ $9 $ 
  Fair Value Measurements at Reporting Date Using
($ in millions)January 28, 2023Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents$15 $ $15 $ 
Derivative financial instruments11  11  
Deferred compensation plan assets34 34   
Other assets4   4 
Total$64 $34 $26 $4 
Liabilities:
Derivative financial instruments$20 $ $20 $ 
  Fair Value Measurements at Reporting Date Using
($ in millions)July 30, 2022Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents$28 $ $28 $ 
Derivative financial instruments27  27  
Deferred compensation plan assets41 41   
Other assets4   4 
Total$100 $41 $55 $4 
Liabilities:
Derivative financial instruments$6 $ $6 $ 
We have highly liquid fixed and variable income investments classified as cash equivalents. We value these investments at their original purchase prices plus interest that has accrued at the stated rate. Our cash equivalents are placed primarily in time deposits.
Derivative financial instruments primarily include foreign exchange forward contracts. See Note 7 of Notes to Condensed Consolidated Financial Statements for information regarding currencies hedged against the U.S. dollar.
11


We maintain the Gap, Inc. Deferred Compensation Plan (“DCP”), which allows eligible employees to defer base compensation and bonus up to a maximum percentage, and non-employee directors to defer receipt of a portion of their Board fees. Plan investments are directed by participants and are recorded at market value and designated for the DCP. The fair value of the Company’s DCP assets is determined based on quoted market prices, and the assets are recorded in other long-term assets on the Condensed Consolidated Balance Sheets.
Nonfinancial Assets
We review the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of the long-lived assets is determined using level 3 inputs and based on discounted future cash flows of the asset or asset group using a discount rate commensurate with the risk. The asset group is defined as the lowest level for which identifiable cash flows are available and largely independent of the cash flows of other groups of assets, which for our retail stores is at the store level.
There were no material impairment charges recorded for long-lived assets during the 13 and 26 weeks ended July 29, 2023 or July 30, 2022.
We review the carrying amount of goodwill and other indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount may not be recoverable.
There were no impairment charges recorded for goodwill or other indefinite-lived intangible assets for the 13 and 26 weeks ended July 29, 2023 or July 30, 2022.
Note 7. Derivative Financial Instruments
We operate in foreign countries, which exposes us to market risk associated with foreign currency exchange rate fluctuations. We use derivative financial instruments to manage our exposure to foreign currency exchange rate risk and do not enter into derivative financial contracts for trading purposes. Consistent with our risk management guidelines, we hedge a portion of our transactions related to merchandise purchases for foreign operations and certain intercompany transactions using foreign exchange forward contracts. These contracts are entered into with large, reputable financial institutions that are monitored for counterparty risk. The currencies hedged against changes in the U.S. dollar are the Canadian dollar, Japanese yen, British pound, Mexican peso, New Taiwan dollar, and Euro. Cash flows from derivative financial instruments are classified as cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows.
Derivative financial instruments are recorded at fair value on the Condensed Consolidated Balance Sheets as other current assets, other long-term assets, accrued expenses and other current liabilities, or other long-term liabilities.
Cash Flow Hedges
We designate foreign exchange forward contracts used to hedge forecasted merchandise purchases and related costs denominated in U.S. dollars made by our international subsidiaries whose functional currencies are their local currencies as cash flow hedges. The foreign exchange forward contracts entered into to hedge forecasted merchandise purchases and related costs generally have terms of up to 24 months. The effective portion of the gain or loss on the derivative financial instruments is reported as a component of other comprehensive income (loss) and is recognized into net income (loss) during the period in which the underlying transaction impacts the Condensed Consolidated Statements of Operations.
Other Derivatives Not Designated as Hedging Instruments
We use foreign exchange forward contracts to hedge our market risk exposure associated with foreign currency exchange rate fluctuations for certain intercompany balances denominated in currencies other than the functional currency of the entity with the intercompany balance. The gain or loss on the derivative financial instruments that represent economic hedges, as well as the remeasurement impact of the underlying intercompany balances, is recorded in operating expenses on the Condensed Consolidated Statements of Operations in the same period and generally offset each other.
12


Outstanding Notional Amounts
We had foreign exchange forward contracts outstanding in the following notional amounts:
($ in millions)July 29,
2023
January 28,
2023
July 30,
2022
Derivatives designated as cash flow hedges$368 $441 $504 
Derivatives not designated as hedging instruments570 645 786 
Total$938 $1,086 $1,290 
Quantitative Disclosures about Derivative Financial Instruments
The fair values of foreign exchange forward contracts are as follows:
($ in millions)July 29,
2023
January 28,
2023
July 30,
2022
Derivatives designated as cash flow hedges:
Other current assets$7 $9 $11 
Other long-term assets1  1 
Accrued expenses and other current liabilities2 5  
Other long-term liabilities1  1 
Derivatives not designated as hedging instruments:
Other current assets3 2 15 
Accrued expenses and other current liabilities6 15 5 
Total derivatives in an asset position$11 $11 $27 
Total derivatives in a liability position$9 $20 $6 
The majority of the unrealized gains and losses from designated cash flow hedges as of July 29, 2023 will be recognized in income (loss) within the next 12 months at the then-current values, which may differ from the fair values as of July 29, 2023 shown above.
Our foreign exchange forward contracts are subject to master netting arrangements with each of our counterparties and such arrangements are enforceable in the event of default or early termination of the contract. We do not elect to offset the fair values of our derivative financial instruments on the Condensed Consolidated Balance Sheets, and as such, the fair values shown above represent gross amounts. The amounts subject to enforceable master netting arrangements were not material for all periods presented.
See Note 6 of Notes to Condensed Consolidated Financial Statements for disclosures on the fair value measurements of our derivative financial instruments.
The pre-tax amounts recognized in net income (loss) related to derivative instruments are as follows:
Location and Amount of (Gain) Loss
Recognized in Income (Loss)
13 Weeks Ended
July 29, 2023
13 Weeks Ended
July 30, 2022
($ in millions)Cost of goods sold and occupancy expensesOperating expensesCost of goods sold and occupancy expensesOperating expenses
Total amount of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of derivatives are recorded$2,215 $1,227 $2,527 $1,358 
(Gain) loss recognized in net income (loss)
Derivatives designated as cash flow hedges (5) (5) 
Derivatives not designated as hedging instruments 10  (7)
Total (gain) loss recognized in net income (loss)$(5)$10 $(5)$(7)
13


Location and Amount of (Gain) Loss
Recognized in Income (Loss)
26 Weeks Ended
July 29, 2023
26 Weeks Ended
July 30, 2022
($ in millions)Cost of goods sold and occupancy expenseOperating expensesCost of goods sold and occupancy expenseOperating expenses
Total amount of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of derivatives are recorded$4,277 $2,451 $4,908 $2,651 
(Gain) loss recognized in net income (loss)
Derivatives designated as cash flow hedges (7) (8) 
Derivatives not designated as hedging instruments 2  (29)
Total (gain) loss recognized in net income (loss)$(7)$2 $(8)$(29)
Note 8. Share Repurchases
Share repurchase activity is as follows:
 13 Weeks Ended26 Weeks Ended
($ and shares in millions except average per share cost)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Number of shares repurchased (1) 5.7  9.4 
Total cost$ $57 $ $111 
Average per share cost including commissions $ $9.99 $ $11.77 
_________
(1)Excludes shares withheld to settle employee statutory tax withholding related to the vesting of stock units.
In February 2019, the Company's Board of Directors (the "Board") approved a $1.0 billion share repurchase authorization (the "February 2019 repurchase program"). The February 2019 repurchase program had $476 million remaining as of July 29, 2023. All common stock repurchased is immediately retired.
Note 9. Earnings (Loss) Per Share
Weighted-average number of shares used for earnings (loss) per share is as follows:
 13 Weeks Ended26 Weeks Ended
(shares in millions)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Weighted-average number of shares - basic369 367 368 369 
Common stock equivalents (1)2  4  
Weighted-average number of shares - diluted371 367 372 369 
_________
(1)For the 13 and 26 weeks ended July 30, 2022, the dilutive impact of outstanding options and awards was excluded from dilutive shares as a result of the Company's net loss for the periods.
The anti-dilutive shares related to stock options and other stock awards excluded from the computation of weighted-average number of shares – diluted were 9 million and 17 million for the 13 weeks ended July 29, 2023 and July 30, 2022, respectively, and 7 million and 12 million for the 26 weeks ended July 29, 2023 and July 30, 2022, respectively, as their inclusion would have an anti-dilutive effect on earnings (loss) per share.
14


Note 10. Commitments and Contingencies
We are a party to a variety of contractual agreements under which we may be obligated to indemnify the other party for certain matters. These contracts primarily relate to our commercial contracts, operating leases, trademarks, intellectual property, financial agreements, and various other agreements. Under these contracts, we may provide certain routine indemnifications relating to representations and warranties (e.g., ownership of assets, environmental or tax indemnifications), or personal injury matters. The terms of these indemnifications range in duration and may not be explicitly defined. Generally, the maximum obligation under such indemnifications is not explicitly stated, and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our Condensed Consolidated Financial Statements taken as a whole.
As a multinational company, we are subject to various proceedings, lawsuits, disputes, and claims ("Actions") arising in the ordinary course of our business. Many of these Actions raise complex factual and legal issues and are subject to uncertainties. As of July 29, 2023, Actions filed against us included commercial, intellectual property, customer, employment, securities, and data privacy claims, including class action lawsuits. The plaintiffs in some Actions seek unspecified damages or injunctive relief, or both. Actions are in various procedural stages and some are covered in part by insurance. As of July 29, 2023, January 28, 2023, and July 30, 2022, we recorded a liability for an estimated loss if the outcome of an Action is expected to result in a loss that is considered probable and reasonably estimable. The liability recorded was not material for any individual Action or in total for all periods presented. Subsequent to July 29, 2023, and through the filing date of this Quarterly Report on Form 10-Q, no information has become available that indicates a change is required that would be material to our Condensed Consolidated Financial Statements taken as a whole.
We cannot predict with assurance the outcome of Actions brought against us. However, we do not believe that the outcome of any current Action would have a material effect on our Condensed Consolidated Financial Statements taken as a whole.
Note 11. Segment Information
We identify our operating segments according to how our business activities are managed and evaluated. As of July 29, 2023, our operating segments included: Old Navy Global, Gap Global, Banana Republic Global, and Athleta Global. Each operating segment has a brand president who is responsible for various geographies and channels. Each of our brands serves customer demand through stores and online channels, leveraging our omni-channel capabilities that allow customers to shop seamlessly across all of our brands. We have determined that each of our operating segments share similar economic and other qualitative characteristics, and therefore the results of our operating segments are aggregated into one reportable segment as of July 29, 2023. We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments.
See Note 2 of Notes to Condensed Consolidated Financial Statements for disaggregation of revenue by channel and by brand and region.
Note 12. Divestitures
On November 7, 2022, we signed agreements to transition our Gap China and Gap Taiwan ("Gap Greater China") operations to a third party, Baozun, to operate Gap Greater China stores and the in-market website as a franchise partner, subject to regulatory approvals and closing conditions. On January 31, 2023, the Gap China transaction closed with Baozun. The impact upon divestiture was not material to our results of operations for the 26 weeks ended July 29, 2023. The Gap Taiwan operations will continue to operate as usual until regulatory approvals and closing conditions are met.
During the 13 weeks ended July 30, 2022, we received regulatory approvals to transition our Old Navy Mexico operations to a third party, Grupo Axo, to operate Old Navy Mexico stores as a franchise partner. As of July 30, 2022, the Company reclassified $73 million of assets and $35 million of liabilities for Old Navy Mexico as held for sale within other current assets and accrued expenses and other current liabilities, respectively, on the Condensed Consolidated Balance Sheet. The aggregate carrying amount of assets and liabilities classified as held for sale consisted of $49 million of net operating lease assets, $16 million of fixed assets, $8 million of inventory, and $35 million of operating lease liabilities. We measured the disposal group at its estimated fair value less costs to sell. As a result of this transaction, the Company recognized a pre-tax loss of $35 million within operating expenses on the Condensed Consolidated Statement of Operations during the 13 weeks ended July 30, 2022. On August 1, 2022, we closed the transaction and transitioned our Old Navy stores in Mexico to Grupo Axo.
On February 1, 2022, we completed the transition of our Gap Italy operations to a third party, OVS S.p.A. ("OVS"), to operate Gap Italy stores as a franchise partner. The impact from the transaction was not material to our results of operations for the 26 weeks ended July 30, 2022. As of July 30, 2022, the Company also reclassified certain assets as held for sale assets that were expected to be sold in the next 12 months related to our distribution center in Rugby, England. The aggregate carrying amount of the assets held for sale, primarily consisting of fixed assets, was $43 million and was recorded within other current assets on the Condensed Consolidated Balance Sheet as of July 30, 2022.
15


Note 13. Supply Chain Finance Program
Our voluntary supply chain finance ("SCF") program provides certain suppliers with the opportunity to sell their receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. We are not a party to the agreements between our suppliers and the financial institutions and our payment terms are not impacted by whether a supplier participates in the SCF program.
We may agree to side letters with participating financial institutions related to the SCF program that require us to transfer a certain amount of cash to be used as collateral for our payment obligations in a specified period. These collateral amounts, if applicable, are classified as restricted cash on our Condensed Consolidated Balance Sheets. There were no collateral amounts under the SCF program as of July 29, 2023 and July 30, 2022. The collateral amount under the SCF program was $30 million as of January 28, 2023. Additionally, our lenders under the ABL Facility who also participate in the SCF program have their related financings secured pursuant to the terms of the ABL Facility.
The Company's outstanding obligations under the SCF program were $390 million, $316 million, and $329 million as of July 29, 2023, January 28, 2023, and July 30, 2022, respectively, and were included in accounts payable on the Condensed Consolidated Balance Sheets.
16


Item 2.     Management's Discussion and Analysis of Financial Condition and Results of Operations.
OUR BUSINESS
We are a collection of purpose-led, lifestyle brands offering apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. We have Company-operated stores in the United States, Canada, Japan, and Taiwan. Our products are available to customers online through Company-owned websites and through third party arrangements. We also have franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta throughout Asia, Europe, Latin America, the Middle East, and Africa. Under these agreements, third parties operate, or will operate, stores and websites that sell apparel and related products under our brand names. In addition to operating in the specialty, outlet, online, and franchise channels, we use our omni-channel capabilities to bridge the digital world and physical stores to further enhance our shopping experience for our customers. Our omni-channel services, including curbside pick-up, buy online pick-up in store, order-in-store, find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences, are tailored uniquely across our collection of brands. Most of the products sold under our brand names are designed by us and manufactured by independent sources.
OVERVIEW
Financial results for the second quarter of fiscal 2023 are as follows:
Net sales for the second quarter of fiscal 2023 decreased 8 percent compared with the second quarter of fiscal 2022.
Online sales for the second quarter of fiscal 2023 decreased 11 percent compared with the second quarter of fiscal 2022 and store and franchise sales for the second quarter of fiscal 2023 decreased 7 percent compared with the second quarter of fiscal 2022.
Gross profit was $1.33 billion for both the second quarters of fiscal 2023 and fiscal 2022. Gross margin for the second quarter of fiscal 2023 was 37.6 percent compared with 34.5 percent for the second quarter of fiscal 2022.
Operating income for the second quarter of fiscal 2023 was $106 million compared with operating loss of $(28) million for the second quarter of fiscal 2022.
The effective income tax rate for the second quarter of fiscal 2023 was negative 8.3 percent compared with negative 2.1 percent for the second quarter of fiscal 2022.
Net income for the second quarter of fiscal 2023 was $117 million compared with net loss of $(49) million for the second quarter of fiscal 2022.
Diluted earnings per share was $0.32 for the second quarter of fiscal 2023 compared with diluted loss per share of $(0.13) for the second quarter of fiscal 2022.
Merchandise inventory as of the second quarter of fiscal 2023 decreased 29 percent compared with the second quarter of fiscal 2022.
On July 26, 2023, the Company announced the appointment of Richard Dickson as the Company's President and Chief Executive Officer, effective August 22, 2023. Bob L. Martin, who had also been serving as the Company's Chief Executive Officer on an interim basis, will remain as the Executive Chair of the Board.
On April 25, 2023, the Company's management committed to the Plan as part of the Company's previously announced efforts to simplify and optimize its operating model and structure. The Plan includes a reduction in workforce of approximately 1,800 employees, primarily in headquarters locations. The actions associated with the reduction of the Company's workforce under the Plan have been substantially completed as of July 29, 2023. In connection with the Plan, the Company incurred $13 million and $88 million in pre-tax restructuring costs during the 13 and 26 weeks ended July 29, 2023, respectively. Restructuring costs for the 13 weeks ended July 29, 2023 included employee-related costs of $3 million and consulting and other associated costs of $10 million. Restructuring costs for the 26 weeks ended July 29, 2023 included employee-related costs of $65 million and consulting and other associated costs of $23 million.
The Company is also continuing to reduce the number of Gap and Banana Republic stores in North America by approximately 350 stores from the beginning of fiscal 2020 to the end of fiscal 2023. As of July 29, 2023, we have closed, net of openings, 327 Gap and Banana Republic stores in North America since the beginning of fiscal 2020.
On November 7, 2022, we signed agreements to transition our Gap Greater China operations to a third party, Baozun, to operate Gap Greater China stores and the in-market website as a franchise partner, subject to regulatory approvals and closing conditions. On January 31, 2023, the Gap China transaction closed with Baozun. The impact upon divestiture was not material to our results of operations for the 26 weeks ended July 29, 2023. The Gap Taiwan operations will continue to operate as usual until regulatory approvals and closing conditions are met.
17


We remain focused on the following strategic priorities in the near term:
managing inventory to support a healthy merchandise margin;
reducing and optimizing our fixed cost structure to improve profitability and manage through current macroeconomic challenges;
driving sales through assortment improvements and a balanced and relevant category mix;
driving creative excellence and delivering product that offers value to our customers through a combination of fit, quality, brand, and price;
rationalizing the Gap and Banana Republic store fleet;
prioritizing asset-light growth through licensing, online, and franchise partnerships globally;
optimizing investments in our four purpose-led lifestyle brands to drive relevance and market share;
attracting and retaining strong talent in our businesses and functions; and
continuing to integrate social and environmental sustainability into business practices to support long-term growth.


18


RESULTS OF OPERATIONS
Net Sales
See Note 2 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for net sales disaggregation.
Comparable Sales ("Comp Sales")
Comp Sales include the results of Company-operated stores and sales through our online channel. The calculation of Comp Sales excludes the results of our franchise business. Comp Sales also included the results of certain foreign operations until their respective transitions to third party franchise partners. See Note 12 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for related disclosures.
A store is included in the Comp Sales calculations when it has been open and operated by the Company for at least one year and the selling square footage has not changed by 15 percent or more within the past year. A store is included in the Comp Sales calculations on the first day it has comparable prior year sales. Stores in which the selling square footage has changed by 15 percent or more as a result of a remodel, expansion, or reduction are excluded from the Comp Sales calculations until the first day they have comparable prior year sales.
A store is considered non-comparable ("Non-comp") when it has been open and operated by the Company for less than one year or has changed its selling square footage by 15 percent or more within the past year.
A store is considered "Closed" if it is temporarily closed for three or more full consecutive days or it is permanently closed. When a temporarily closed store reopens, the store will be placed in the Comp/Non-comp status it was in prior to its closure. If a store was in Closed status for three or more days in the prior year, the store will be in Non-comp status for the same days the following year.
Current year foreign exchange rates are applied to both current year and prior year Comp Sales to achieve a consistent basis for comparison.
The percentage change in Comp Sales by global brand and for The Gap, Inc., as compared with the preceding year, is as follows:
 13 Weeks Ended26 Weeks Ended
 July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Old Navy Global(6)%(15)%(4)%(19)%
Gap Global(1)%(7)%— %(9)%
Banana Republic Global(8)%%(8)%16 %
Athleta Global(7)%(8)%(10)%(8)%
The Gap, Inc.(6)%(10)%(4)%(12)%


19


Store count, openings, closings, and square footage for our stores are as follows:
 January 28, 202326 Weeks Ended July 29, 2023July 29, 2023
 Number of
Store Locations
Number of
Stores Opened
Number of
Stores Closed
Number of
Store Locations
Square Footage
(in millions)
Old Navy North America1,238 17 1,247 19.9 
Gap North America493 — 12 481 5.1 
Gap Asia (1)232 140 1.2 
Banana Republic North America419 — 11 408 3.4 
Banana Republic Asia46 47 0.2 
Athleta North America257 15 269 1.1 
Company-operated stores total 2,685 36 40 2,592 30.9 
Franchise (1)667 101 38 864  N/A
Total3,352 137 78 3,456 30.9 
Increase (decrease) over prior year1.9 %(6.4)%
 January 29, 202226 Weeks Ended July 30, 2022July 30, 2022
 Number of
Store Locations
Number of
Stores Opened
Number of
Stores Closed
Number of
Store Locations
Square Footage
(in millions)
Old Navy North America1,252 16 1,263 20.2 
Gap North America520 12 510 5.4 
Gap Asia329 31 302 2.5 
Gap Europe (2)11 — — — — 
Banana Republic North America446 11 437 3.7 
Banana Republic Asia50 — 51 0.2 
Athleta North America227 13 236 1.0 
Company-operated stores total2,835 38 63 2,799 33.0 
Franchise (2)564 30 14 591 N/A
Total3,399 68 77 3,390 33.0 
Decrease over prior year(3.0)%(3.8)%
__________
(1)The 89 Gap China stores that were transitioned to Baozun during the period are not included as store closures or openings for Company-operated and Franchise store activity. The ending balance for Gap Asia excludes Gap China stores and the ending balance for Franchise includes Gap China locations transitioned during the period.
(2)The 11 Gap Italy stores that were transitioned to OVS during the period are not included as store closures or openings for Company-operated and Franchise store activity. The ending balance for Gap Europe excludes Gap Italy stores and the ending balance for Franchise includes Gap Italy stores.
Outlet and factory stores are reflected in each of the respective brands.
20


Net Sales
Our net sales decreased $309 million, or 8 percent, during the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022, and decreased $510 million, or 7 percent, during the first half of fiscal 2023 compared with the first half of fiscal 2022. This was driven primarily by a decrease in Comp Sales, the transition of our Gap China business to a partnership model, and strategic store closures. Additionally, there was an unfavorable impact of foreign exchange for both the second quarter of fiscal 2023 and first half of fiscal 2023 of $24 million and $59 million, respectively. The foreign exchange impact is the translation impact if net sales for the prior year period were translated at exchange rates applicable during the current year period.
Cost of Goods Sold and Occupancy Expenses
  
13 Weeks Ended26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Cost of goods sold and occupancy expenses$2,215 $2,527 $4,277 $4,908 
Gross profit$1,333 $1,330 $2,547 $2,426 
Cost of goods sold and occupancy expenses as a percentage of net sales
62.4 %65.5 %62.7 %66.9 %
Gross margin37.6 %34.5 %37.3 %33.1 %
Cost of goods sold and occupancy expenses decreased 3.1 percentage points as a percentage of net sales in the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022.
Cost of goods sold decreased 4.1 percentage points as a percentage of net sales in the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022, primarily driven by a decrease in air freight expenses and improved promotional activity. This was partially offset by commodity price increases. Additionally, there was inventory impairment that occurred during the second quarter of fiscal 2022 as a result of delayed seasonal product due to global supply chain disruption and extended size product discontinued at stores.
Occupancy expenses increased 1.0 percentage points as a percentage of net sales in the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022, primarily driven by a decrease in Comp Sales without a corresponding decrease in fixed occupancy expenses.
Cost of goods sold and occupancy expenses decreased 4.2 percentage points as a percentage of net sales in the first half of fiscal 2023 compared with the first half of fiscal 2022.
Cost of goods sold decreased 5.0 percentage points as a percentage of net sales in the first half of fiscal 2023 compared with the first half of fiscal 2022, primarily driven by a decrease in air freight expenses as well as improved promotional activity. This was partially offset by commodity price increases.
Occupancy expenses increased 0.8 percentage points as a percentage of net sales in the first half of fiscal 2023 compared with the first half of fiscal 2022, primarily driven by a decrease in Comp Sales without a corresponding decrease in fixed occupancy expenses.
Operating Expenses
  
13 Weeks Ended26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Operating expenses$1,227 $1,358 $2,451 $2,651 
Operating expenses as a percentage of net sales34.6 %35.2 %35.9 %36.1 %
Operating margin3.0 %(0.7)%1.4 %(3.1)%
Operating expenses decreased $131 million, or 0.6 percentage points as a percentage of net sales during the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022, primarily due to the following:
a decrease in advertising expenses;
a decrease in payroll expenses primarily due to operating model and structure changes;
a loss on divestiture activity of $35 million that occurred during the second quarter of fiscal 2022 related to the transition of the Old Navy Mexico business; and
a decrease in technology-related investments; partially offset by
restructuring expenses of $13 million incurred during the second quarter of fiscal 2023 as a result of actions taken to further simplify and optimize our operating model and structure.

21


Operating expenses decreased $200 million, or 0.2 percentage points as a percentage of net sales during the first half of fiscal 2023 compared with the first half of fiscal 2022, primarily due to the following:
a decrease in advertising expenses;
a gain on sale of building of $47 million that occurred during the first quarter of fiscal 2023;
a decrease in technology-related investments; and
a loss on divestiture activity of $35 million that occurred during the second quarter of fiscal 2022 related to the transition of the Old Navy Mexico business; partially offset by
restructuring expenses of $84 million incurred during the first half of fiscal 2023 as a result of actions taken to further simplify and optimize our operating model and structure.
Interest Expense
  
13 Weeks Ended26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Interest expense$15 $21 $38 $41 
Interest expense primarily includes interest on outstanding borrowings and obligations mainly related to our Senior Notes and ABL Facility. Interest expense decreased $6 million or 29 percent during the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022 and decreased $3 million or 7 percent during the first half of fiscal 2023 compared with the first half of fiscal 2022 primarily due to a benefit from the reversal of previously recognized interest expense as a result of a U.S. transfer pricing settlement related to our sourcing activities, as well as lower outstanding borrowings on the ABL Facility.
Interest Income
  
13 Weeks Ended26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Interest income$(17)$(1)$(30)$(2)
Interest income increased $16 million during the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022 and increased $28 million during the first half of fiscal 2023 compared with the first half of fiscal 2022 primarily driven by higher cash balances and higher interest rates.
Income Taxes
  
13 Weeks Ended26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
July 29,
2023
July 30,
2022
Income taxes$(9)$$(11)$(53)
Effective tax rate(8.3)%(2.1)%(12.5)%20.1 %
The effective tax rate decreased for the second quarter of fiscal 2023 compared with the second quarter of fiscal 2022 and for the first half of fiscal 2023 compared with the first half of fiscal 2022 primarily due to tax benefits recognized from a U.S. transfer pricing settlement related to our sourcing activities and changes in the amount and jurisdictional mix of pretax earnings, partially offset by changes in valuation allowances in the prior year.
22


LIQUIDITY AND CAPITAL RESOURCES
In addition to our cash flows from operating activities, our primary sources of liquidity include cash and cash equivalents, our Senior Notes, and borrowings under our ABL Facility. As of July 29, 2023, we had cash and cash equivalents of approximately $1.4 billion. We hold our cash and cash equivalents across a diversified set of reputable financial institutions and monitor the credit standing of those financial institutions. In addition, we have issued $1.5 billion aggregate principal amount of our Senior Notes, and are also able to supplement near-term liquidity, if necessary, with our ABL Facility or other available market instruments. During the second quarter of fiscal 2023, the Company repaid $200 million of its outstanding borrowing under the ABL Facility. As a result, the Company's outstanding borrowing under the ABL Facility was reduced to $150 million as of July 29, 2023. See Note 5 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for disclosures on the Senior Notes and ABL Facility.
Our largest source of operating cash flows is cash collections from the sale of our merchandise. Our primary uses of cash include merchandise inventory purchases, lease and occupancy costs, personnel-related expenses, purchases of property and equipment, shipping costs, and payment of taxes. As our business typically follows a seasonal pattern, with sales peaking during the end-of-year holiday period, we fund inventory expenditures during normal and peak periods through cash flows from operating activities and available cash. The seasonality of our operations, in addition to the impact of global economic conditions such as the uncertainty surrounding global inflationary pressures, the Russia-Ukraine crisis, distress in global credit and banking markets, and new legislation, may lead to significant fluctuations in certain asset and liability accounts as well as cash inflows and outflows between fiscal year-end and subsequent interim periods.
Our voluntary SCF program provides certain suppliers with the opportunity to sell their receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. We are not a party to the agreements between our suppliers and the financial institutions and our payment terms are not impacted by whether a supplier participates in the SCF program. See Note 13 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for disclosures on the Company's SCF program.
We believe our existing balances of cash and cash equivalents, along with our cash flows from operations, and instruments mentioned above, provide sufficient funds for our business operations as well as capital expenditures, dividends, and other liquidity requirements associated with our business operations over the next 12 months and beyond.
Cash Flows from Operating Activities
Net cash provided by operating activities was $528 million during the first half of fiscal 2023 compared with $207 million of net cash used for operating activities during the first half of fiscal 2022, primarily due to the following:
    Net Income (Loss)
Net income compared with net loss in prior comparable period;
Changes in operating assets and liabilities
an increase of $396 million related to accounts payable primarily due to the timing of payments for inventory during the first half of fiscal 2023 compared with the first half of fiscal 2022; and
an increase of $300 million related to merchandise inventory primarily due to lower inventory levels in the first half of fiscal 2023 compared with the first half of fiscal 2022; partially offset by
a decrease of $367 million related to income taxes payable, net of receivables and other tax-related items, primarily due to receipt of tax refunds during the first half of fiscal 2022 related to fiscal 2020 net operating loss carryback claims.
Cash Flows from Investing Activities
Net cash used for investing activities increased $39 million during the first half of fiscal 2023 compared with the first half of fiscal 2022, primarily due to the following:
$76 million in net proceeds from the sale of a building during the first half of fiscal 2023 compared with $333 million in net proceeds from the sale of a building during the first half of fiscal 2022; partially offset by
$207 million less purchases of property and equipment during the first half of fiscal 2023 compared with the first half of fiscal 2022.
23


Cash Flows from Financing Activities
Net cash used for financing activities was $309 million during the first half of fiscal 2023 compared with $122 million of net cash provided by financing activities during the first half of fiscal 2022, primarily due to the following:
$350 million in proceeds received from borrowing under the ABL Facility during the first half of fiscal 2022; and
$200 million for repayments of borrowing under the ABL Facility during the first half of fiscal 2023; partially offset by
$111 million in repurchases of common stock during the first half of fiscal 2022 compared with no repurchases during the first half of fiscal 2023.
Free Cash Flow
Free cash flow is a non-GAAP financial measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available for discretionary and non-discretionary items after the deduction of capital expenditures. We require regular capital expenditures including technology improvements as well as building and maintaining our stores and distribution centers. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.
The following table reconciles free cash flow, a non-GAAP financial measure, from a GAAP financial measure.
 26 Weeks Ended
($ in millions)July 29,
2023
July 30,
2022
Net cash provided by (used for) operating activities$528 $(207)
Less: Purchases of property and equipment(199)(406)
Free cash flow$329 $(613)
Dividend Policy
In determining whether and at what level to declare a dividend, we consider a number of factors including sustainability, operating performance, liquidity, and market conditions.
We paid a dividend of $0.15 per share during the second quarter of fiscal 2023. In August 2023, the Board authorized a dividend of $0.15 per share for the third quarter of fiscal 2023.
Share Repurchases
Certain financial information about the Company’s share repurchases is set forth in Note 8 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.
Summary Disclosures about Contractual Cash Obligations and Commercial Commitments
There have been no material changes to our contractual obligations and commercial commitments as disclosed in our Annual Report on Form 10-K as of January 28, 2023, other than those which occur in the normal course of business. See Note 10 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for disclosures on commitments and contingencies.
Critical Accounting Policies and Estimates
There have been no significant changes to our critical accounting policies and estimates as discussed in our Annual Report on Form 10-K for the fiscal year ended January 28, 2023. See Note 1 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for disclosures on accounting policies.
Item 3.     Quantitative and Qualitative Disclosures About Market Risk.
Our market risk profile as of January 28, 2023, is disclosed in our Annual Report on Form 10-K and has not significantly changed other than as noted below. See Notes 5, 6, and 7 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for disclosures on our debt and credit facilities, investments, and derivative financial instruments.
On March 27, 2023, Moody's downgraded our corporate credit rating from Ba2 to Ba3 with a negative outlook and downgraded the rating of our Senior Notes from Ba3 to B1 with a negative outlook. These reductions and any future reduction in our credit ratings could result in an increase to our interest expense on future borrowings.
24


Item 4.     Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective.
Changes in Internal Control over Financial Reporting
There was no change in the Company’s internal control over financial reporting that occurred during the Company’s second quarter of fiscal 2023 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company reviews its internal control over financial reporting following major organizational restructuring. The impact of the Plan on the Company's internal control over financial reporting will be assessed and monitored throughout the fiscal year. See Note 3 of Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, for disclosures on the Plan.
25


PART II – OTHER INFORMATION
Item 1.     Legal Proceedings.
As a multinational company, we are subject to various proceedings, lawsuits, disputes, and claims ("Actions") arising in the ordinary course of our business. Many of these Actions raise complex factual and legal issues and are subject to uncertainties. Actions filed against us from time to time include commercial, intellectual property, customer, employment, securities, and data privacy claims, including class action lawsuits. The plaintiffs in some Actions seek unspecified damages or injunctive relief, or both. Actions are in various procedural stages, and some are covered in part by insurance.
We cannot predict with assurance the outcome of Actions brought against us. Accordingly, developments, settlements, or resolutions may occur and impact operations in the quarter of such development, settlement, or resolution. However, we do not believe that the outcome of any current Action would have a material effect on our financial results.
Item 1A.     Risk Factors.
There have been no material changes in our risk factors from those disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 28, 2023, other than as updated in Part II, Item 1A of our Quarterly Report on Form 10-Q for the fiscal quarter ended April 29, 2023.
Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds.
In February 2019, we announced that the Board approved a $1.0 billion share repurchase authorization (the "February 2019 repurchase program"), which has no expiration date. There were no shares repurchased, other than shares withheld to settle employee statutory tax withholding related to the vesting of stock units, during the 13 weeks ended July 29, 2023. The February 2019 repurchase program had $476 million remaining as of July 29, 2023.
Item 5.     Other Information
None.
26


Item 6.     Exhibits.
Incorporated by Reference
Exhibit No.Exhibit DescriptionFormFile No.ExhibitFiling DateFiled/
Furnished
Herewith
3.1Amended and Restated Certificate of Incorporation (P)10-K1-75623.1April 26, 1993
Certificate of Amendment of Amended and Restated Certificate of Incorporation10-K1-75623.2April 4, 2000
Amended and Restated Bylaws (effective August 15, 2022)10-Q1-75623.3August 26, 2022
The Gap, Inc. 2016 Long-Term Incentive Plan (as amended and restated effective May 9, 2023)DEF 14A1-7562Annex AMarch 29, 2023
Letter Agreement dated July 21, 2023 by and between Richard Dickson and the Registrant8-K1-756210.1July 26, 2023
Form of Inducement Restricted Stock Unit Agreement with Richard Dickson8-K1-756210.2July 26, 2023
Form of Make-Whole Restricted Stock Unit Agreement with Richard Dickson8-K1-756210.3July 26, 2023
Form of Make-Whole Performance Share Agreement with Richard Dickson8-K1-756210.4July 26, 2023
Summary of Relocation Benefits for Richard DicksonX
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002)X
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer of The Gap, Inc. (Section 302 of the Sarbanes-Oxley Act of 2002)X
Certification of the Chief Executive Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002X
Certification of the Chief Financial Officer of The Gap, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002X
101The following materials from The Gap, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 29, 2023, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Stockholders' Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) Notes to Condensed Consolidated Financial StatementsX
104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)X
_____________________________
(P)    This Exhibit was originally filed in paper format. Accordingly, a hyperlink has not been provided.
Indicates management contract or compensatory plan or arrangement.





27


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
THE GAP, INC.
Date:August 25, 2023By/s/ Richard Dickson
Richard Dickson
President and Chief Executive Officer
(Principal Executive Officer)
Date:August 25, 2023By/s/ Katrina O'Connell
Katrina O'Connell
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
28