Gap To Launch New Chain

High street giant Gap is planning to launch a new chain aimed at the 35 to 50 year-old woman who is seeking moderately priced clothes, as was published in Business Week.

The publication further stated the US-based company has been interviewing outside executives to run the chain as well as designers.

With the markets looking for growth at Gap and its high profile turnaround having faltered in recent months, a new chain is a logical move and could generate an additional USD1bn-2bn a year in sales, the report said. Gap would need to open between 200 and 400 locations to meet that target.

The younger baby boomer the chain would aim to attract, with apparel ranging from weekend wear to office outfits, offers strong potential and minimal cannibalisation of Gap's existing three chains. It also taps into a consumer who still rates clothing as a key purchase, rather than older baby boomers who do not buy as many clothes.

www.gapinc.com
16 August 2004

Sales Slow AT Gap

Even Sarah Jessica Parker couldn't prevent the slowdown in sales at Gap. The American retail giant reported net sales of USD1.0 billion for the four-week period ended July 31, 2004, which represents a 3 percent decrease compared with net sales of USD1.1 billion for the same period ended August 2, 2003. The company's comparable store sales for July 2004 decreased 5 percent compared with a 9 percent increase in July 2003.

Comparable store sales for July 2004 for Gap International were down 12 percent versus positive 8 percent last year.

"Although sales of summer product at Gap, Banana Republic and Old Navy were strong in May, June's soft traffic trends continued into July, making summer clearance results disappointing overall," said Sabrina Simmons, Senior Vice President, Treasury and Investor Relations. "Due to markdowns needed to clear summer product, total company merchandise margins in July were slightly below last year. However, we expect to report a solid year-over-year gain in merchandise margins for the second quarter."

The company announced that its expected earnings per share for the second quarter reflects about USD0.04, or about USD65 million, of expenses related to premiums paid on early retirement of about USD300 million of funded debt. This USD65 million will be included in operating expenses for the second quarter. Reflecting these charges, the company expects second quarter reported earnings per share to be USD0.19 to USD0.21.

The company reiterated that it expects inventory per square foot at the end of the second quarter to be down on a percentage point basis in the low single digits.

As of July 31, 2004, Gap Inc. operated 2,999 store locations compared with 3,095 store locations last year. Gap Inc. will announce its second quarter earnings results via press release on August 19, 2004.

www.gapinc.com
7 August 2004

SJP New Face Of Gap

After those awful Lux shampoo ads, Sarah Jessica Parker is back on true form. In an exclusive deal with Gap, the Sex and the City star is the new face of the American clothing company for this autumn. Sporting low slung jeans, a velvet jacket and pearls, the first ad sees her as glamorous and sexy as ever.

www.gapinc.com
27 July 2004

Solid Sales At Gap

US retailer Gap posted net sales of GBP652.9 million for the four weeks to May 29, a 7 per cent increase on the same period last year.

Comparable store sales for the group, which also owns Banana Republic and Old Navy, rose by 6 per cent.

www.gapinc.com
15 June 2004

Gap Leads To Improve Manufacturing Standards

Gap today issued its first social responsibility report, offering a comprehensive look into its ongoing efforts to improve labour standards in the approximately 3,000 garment factories worldwide that produce merchandise for the company's Gap, Old Navy and Banana Republic brands.

The report also provides an overview of the company's focus on supporting sustainable, industry-wide change beyond the garment factories that produce its merchandise.

The report, which can be read on full at www.gapinc.com highlights the following:

A detailed review of the company's garment manufacturer and factory approval process and ongoing global monitoring program, which was launched in 1996. The company's 90-plus person compliance team conducted approximately 8,500 factory visits in 2003. The team rejected 16 percent of the 653 new garment facilities evaluated in 2003, and revoked prior approvals for 136 factories because of compliance violations.

Aggregated data for 2003 from eleven geographic regions showing labour and health and safety issues in 50 countries.

A discussion of the company's commitment to working collaboratively with multi-stakeholder initiatives such as the Ethical Trading Initiative, Social Accountability International and the Global Alliance; labour unions such as UNITE; and other groups such as socially responsible investment funds to create sustainable, industry-wide solutions and universal standards.

"We believe that garment and other manufacturing workers around the world deserve better than the reality that many unfortunately face," said Gap Inc. CEO and President Paul Pressler. "We recognize and embrace our duty to take a leadership role, and our first social responsibility report discusses in detail our comprehensive efforts and commitments. We are convinced that collaborative, multi-stakeholder engagement is the only way to create sustainable changes for garment workers worldwide. We are working diligently toward that goal."

www.gapinc.com
13 May 2004

Gap Joins Ethical Trading Initiative

Global retailer Gap announced today it has been accepted into membership in the U.K.-based Ethical Trading Initiative (ETI). Gap Inc. is the third U.S. corporation and the thirty-seventh company overall to join the alliance, which also currently includes 16 non-governmental organizations and relevant U.K. and global trade unions.

"Joining ETI is an important step in our ongoing efforts to evolve our program and find sustainable approaches that will improve garment factory working conditions around the world," said Anne Gust, Executive Vice President and Chief Administrative and Compliance Officer for Gap Inc. "We realize we can't do this work alone. We look forward to learning from ETI members and working collaboratively to address global labour issues that affect workers in garment manufacturing and other sectors."

ETI works to identify and promote good practice in the implementation of corporate codes governing supply chain labour conditions, primarily in the food and clothing sectors. The group's ultimate goal is to ensure that conditions for workers producing goods for the U.K. market meet or exceed international labour standards. Gap Inc. has operated retail stores in the United Kingdom since 1987. ETI only accepts a company for membership following a rigorous review process to assess the company's commitment to implementing the ETI Base Code with its suppliers. All membership applications are approved by the organisation's board of directors.

www.ethicaltrade.org
www.gapinc.com
29 April 2004

Gap Reports Growth

Global fashion retailer Gap, said it remained focused on continuing the turnaround that began more than a year ago to generate growth in its core brands. It further plans to look at international expansion opportunities, starting early next year.

Gap has been working hard to revive its business after 29 straight months of falling sales that ended in October last year. It has cut expenses, improved merchandise and advertising and reduced store openings.

Last week Gap provided evidence that the company's recovery still has momentum when it reported profit nearly doubled in the third quarter - it's fifth consecutive quarter of earnings growth.

The autumn range featured corduroy and was heavily promoted with an advertising campaign featuring Missy Elliott and Madonna. Third-quarter sales rose 8 per cent to USD3.9bn. Sales at stores open at least a year - a leading measure of retail performance known as same-store sales - were up 6 per cent, compared with a rise of 2 per cent one year ago.

www.gapinc.com
24 November 2003

Gap, Madonna and Missy Eliott

Gap will premiere its new TV campaign featuring music stars Madonna and Missy Eliott in the UK this week, a few days after its US launch.

The stars are featured wearing Gap's new range of cords, which the retailer hopes will further drive the strong sales recovery it has seen over this year. The soundtrack to the ads use the new song Into the Hollywood Groove which is a mix of Madonna's latest single Hollywood, and the 1985 classic track Get Into The Groove.

Madonna wears Gap's new low rise cropped cords and a GapBody ribbed white tank top. Missy's look features Gap low-rise boot cut cords worn with a matching cord jacket customised with a classic Gap grey hoodie. Diamonds not included.

19 August 2003
www.gapinc.com

Madonna and the Gap

Madonna is to be the new face of the Gap in a new multimillion dollar ad and television campaign beginning this fall. She will also use the venture to promote her children's book, "The English Roses," slated for a September release date.

Madonna doesn't lend her name and face to just anyone. The most notable product she endorsed was Pepsi back in 1989. The company dropped her after the controversial "Like a Prayer" video hit the air.

Having Madonna should resonate well with the group as the chain wants to bring back shoppers in their 30s and early 40s.

24 July 2003
www.gapinc.com

Gap Q4 sales up 14%

On Thursday Gap Inc reported a small increase of sales the fourth quarter as well as the fiscal year 2002, ending February 1, 2003.
Net sales for the fourth quarter increased 14 percent to USD 4.7 billion, compared with USD 4.1 billion for the fourth quarter last year. For the 52 weeks ended February 1, net sales increased by four percent to USD 14.5 billion (USD 13.8 billion for 2001).

"We're pleased with our fourth quarter and year-end results, which reflect the hard work and progress made in our turnaround efforts across all brands," said President and CEO Paul Pressler.

March 1, 2003
www.gapinc.com

GapMaternity now in stores

GapMaternity, the specialty line for pregnant women that until now was only offered online, will launch this week in 12 store locations across the United States. The GapMaternity line will be available within babyGap stores, where pregnant women stocking up on baby clothes can now also find items for themselves. The company announced in a press release.
"For many women, shopping for maternity clothes with friends and family is an important part of celebrating their pregnancy," said Rebecca Weill, Director of Gap Public Relations.

GapMaternity offers a wide range of looks to suit every woman's personal style, from jeans in a variety of washes and belly panel styles and comfortable everyday active clothes, to tailored, professional looks for work. This spring, GapMaternity takes inspiration from the Gap women's line, pairing jeans with Oxford shirts and cable sweaters, for a "prep cool" look. Rollover Yoga pants, capris and shorts can be rolled above or beneath the belly. The new Classic Stretch Twill system (in pants, capris, shorts, skirts and blazers) can be dressed up for work, or paired with stretch Ts for casual weekends.

January 25, 2003
www.gapinc.com

New CFO Gap: Byron Pollitt

Heidi Kunz, the chief financial officer of Gap Inc, America's biggest clothing retailer, has resigned and will be replaced by Byron Pollitt (51), who, like the company's new chief executive officer, comes from Walt Disney Co. Gap, the owner of Gap, Banana Republic and Old Navy stores, did not give a reason for the leaving of Ms Kunz, who has been with the company since July 1999.

Mr Pollitt was CFO and executive vice-president for Walt Disney Parks and Resorts, which was led by Paul Pressler until he left to become Gap's president and CEO. The new CEO is trying to change Gap's management and culture as the retailer emerges from a two-year slump in sales and profit caused partly by fashion mistakes during former CEO Millard Drexler's tenure, analysts say.

"The performance of the company left much to be desired in the past few years and, like it or not, Kunz was identified with it," says Kurt Barnard, president of Barnard's Retail Consulting Group, who has followed the retail industry for 45 years. "It's not unexpected that, as a replacement, Pressler should choose someone he knows." Mr Pollitt will be responsible for corporate finance, strategy and information technology.

www.gapinc.com

January 21, 2003

GAP improves holiday season

Gap Inc on Thursday reported net sales of USD 2.5 billion for the five-week period ended January 4, 2003, which represents a 10 percent increase compared to net sales the year before. The company's comparable store sales for December 2002 increased 5 percent, compared to an 11 percent decrease in December 2001.

"We're pleased that our December sales and merchandise margins exceeded expectations," said Chief Financial Officer Heidi Kunz in a statement. "We offered customers better balanced and brand-appropriate product assortments supported by more focused marketing and promotions."

Year-to-date net sales of USD 13.6 billion for the 48 weeks ended January 4, 2003 increased 3 percent. The company's year-to-date comparable store sales decreased 4 percent compared to a decrease of 13 percent in the prior year.

January 11, 2003
www.gapinc.com

Gap-stripes boost November sales

America retailer Gap Inc. this week reported net sales of $1.3 billion for the four-week period ended November 30, 2002, which represents a 14 percent increase compared to net sales of $1.2 billion for the same period ended December 1, 2001. According to the company the strong results are a direct result of new marketing concepts including the striped sweaters, scarves and gloves that have been dominating Gap-stores throughout the country. The company's comparable store sales for November 2002 increased nine percent, compared to a 25 percent decrease in November 2001.

“Overall, November sales slightly exceeded our beginning of month projections”, said Heidi Kunz, chief financial officer. “Customers are responding well to key items in our marketing campaigns, including the Crazy Stripe sweater, scarf and hat at Gap, and Performance Fleece at Old Navy.”

Year-to-date net sales of $11.1 billion for the 43 weeks ended November 30, 2002 increased 2 percent compared to net sales of $10.9 billion for the same period ended December 1, 2001. The company's year-to-date comparable store sales decreased 6 percent compared to a decrease of 13 percent in the prior year.

November 6, 2002
www.gapinc.com

Gap chairman retires

Gap Inc. announced this week that executive John Lillie has retired from his operating role as Vice Chairman. Mr. Lillie also has resigned from the board of directors.

Mr. Lillie was a Gap Inc. board member since 1992. He joined the company in January 2001 in the newly created operating role of vice chairman, reporting to the chief executive officer. In that role, Mr. Lillie oversaw the company's supply chain, administrative and financial operations.

"I'm proud to have been associated with Gap for more than a decade, both as a board member and, more recently, as an operating executive," Mr. Lillie said.

Reporting to Mr. Lillie were Chuck Crovitz, Chief Supply Chain Officer; Anne Gust, Chief Administrative Officer; and Heidi Kunz, Chief Financial Officer. They will now report directly to Gap Inc. President and CEO Paul Pressler.

November 22, 2002
www.gapinc.com

Gap sales on the rise

Finally there seems to have come an ending to a 29-month sales slide at San Francisco based Gap. This week the American company announced a surprisingly strong October. The improvement raised hopes that the long-slumping retailer is poised to regain its former flair.
The company had a busy October at its three chains - Gap, Old Navy and Banana Republic.
The company's sales at stores open at least a year rose 11 percent in October, halting a slide that began in May 2000. These sales, known as same-store sales, are a key measure of a retailer's health.

At Old Navy, same-store sales rose 24 percent in October compared to a 6 percent gain at Banana Republic and a 1 percent increase at the U.S. stores of the flagship Gap division.

Optimists see plenty of upside for Gap. The company's return to more basic fashions even bodes well in a weak economy because those clothes have always sold well in uncertain times.Another encouraging sign: October's same-store sales were higher although customer traffic was down from a year ago. The traffic decreases ranged from 3 percent at Old Navy to 8 percent at the Gap chain.

These figures suggest that shoppers who came to the stores liked what they saw so much that Gap didn't have to discount merchandise as deeply as last year to generate sales. This phenomenon produced higher sales per customer and boosted the company's profit margins.

November 14, 2002
www.gapinc.com

Gap reports sales increase of 6%

American popular retailer Gap Inc. reported a sales increase of six per cent. In numbers this percentage accounts for $1.3 billion for the five-week period ended October 5, 2002, compared to sales of $1.2 billion for the same period ended October 6, 2001. The company's comparable store sales for September 2002 were down 2 percent compared to a 17 percent decrease in September 2001.
Year-to-date sales of $8.6 billion for the 35 weeks ended October 5, 2002 represent a decrease of 1 percent over sales of $8.7 billion for the same period ended October 6, 2001. The company's year-to-date comparable store sales decreased 9 percent compared to a decrease of 11 percent in the prior year.

Chief Financial Officer Heidi Kunz said in a statement: "Overall, the negative traffic trends and promotional retail environment experienced in August continued throughout September, which led to an increase in promotional activity. However, compared to last year, we sold less at markdown and had better markdown margins, resulting in a year-over-year improvement in total company margins."
As of October 5, 2002, Gap Inc. operated 4,277 store concepts compared to 4,071 store concepts last year, which represents an increase of 5 percent. The number of stores by location totaled 3,152 compared to 3,045 stores by location last year, which represents an increase of 4 percent.

www.gapinc.com
October 11, 2002

Former UK Cola-President moves to Gap

The former UK President of Coca Cola has been appointed to the Board of Directors of American retailer Gap Inc. Gap announced the news concerning Penny Hughes this week. Hughes, 43, was an executive with Coca-Cola for 10 years in the United Kingdom and held extensive operational and strategic responsibilities in the company's international division. She served as Coca-Cola's President of U.K. and Ireland operations before leaving the company in 1994.
"We're extremely pleased to have Ms. Hughes join our board," said Gap Inc. Chairman Donald G. Fisher. "Her strong international brand management and global operations experience will be a great benefit to our company and shareholders."

Prior to joining Coca-Cola, Ms. Hughes worked in the United Kingdom for the Milk Marketing Board and Procter & Gamble. Ms. Hughes currently works as a consultant and serves on the boards of several European-based companies, including Vodafone and Swedish bank SEB. Ms. Hughes also previously served as a board member of Body Shop International for seven years.
Ms. Hughes will serve on the Board's Audit and Finance and Corporate Governance Committees.

October 4, 2002
www.gapinc.com

Gap sales down 2%

US retailer Gap Inc. reported sales of $1.16 billion for the four-week period which ended August 31st 2002, compared to sales of $1.09 billion for the same period ended September 1st 2001. The company's comparable store sales for August 2002 were down 2 percent, compared to a 17 percent decrease in August 2001.

Gap experienced a slow start to August, but the company's performance improved in the second half of the month. A Gap spokeswoman said that despite the increase in promotions, total company merchandise margins improved year over year and met beginning of month projections.

Year-to-date sales of $7.3 billion for the 30 weeks ended August 31st 2002 represent a decrease of 3% over sales of $7.5 billion for the same period ended September 1st 2001. The company's year-to-date comparable store sales decreased 11% compared to a decrease of 10% in the prior year.

www.gapinc.com
06-09-02

GAP-campaign "For every generation"

Gap unveils its "For Every Generation" global marketing campaign this week. Comprising television, print, outdoor, direct mail, web and in-store marketing. Gap speaks a common language that everyone understands, and this campaign reflects the connection that people of all ages have with Gap, whether you are six, sixteen or sixty.

The print campaign, shot by Mikael Jansson, features more than 50 personalities from the worlds of film, fashion, music, art and dance. Each
person is wearing a pair of their favorite Gap jeans, along with a mix of other Gap Fall items and their own personal clothes and accessories.

The dynamic and highly personal portraits capture a wide range of ages, from established icons like Willie Nelson, Sissy Spacek, Lauren Hutton, Kris
Kristofferson and Wayne Gretzsky, to current stars Salma Hayek, Christian Slater, Bill Paxton, Natalie Imbruglia and Djimon Hounsou.
Also featured are several up-and-coming breakout performers such as dancer Will Kemp, actor Aaron Stanford and actor and singer Taryn Manning. Fashion
personalities Kelly Klein and Polly Mellen, artist Ed Ruscha and three generations of Olympic gold medalists help round out the cast.

Through its stores in the United States, Canada, the United Kingdom, Japan, Germany and France, Gap sells clothes, accessories and personal care products for adults, kids and baby.

www.gapinc.com
08-08-02

Gap Inc. Reports March Sales Down 2 Percent; Comparable Store Sales Down 12 Percent

Gap Inc. (NYSE-GPS) today reported sales of $1.21 billion for the five-week period ended April 6, 2002, compared with sales of $1.24 billion for the same period ended April 7, 2001, which represents a 2 percent decrease. The company?s comparable store sales for March 2002 were down 12 percent, compared to an 8 percent decrease in March 2001.

Comparable sales by division for March 2002 were as follows:
Gap Domestic: negative 12% versus negative 6% last year
Gap International: negative 16% versus negative 2% last year
Banana Republic: negative 4% versus negative 9% last year
Old Navy: negative 12% versus negative 13% last year

"Gap and Old Navy experienced weaker than expected pre-Easter sales, which affected our performance in March," said CFO Heidi Kunz. "Looking at the remainder of the first quarter, we expect the Easter shift from April to March to negatively impact April sales. Although difficult to predict, we continue to assume April sales will be about 42% of the total sales for March and April."

Year-to-date sales of $1.9 billion for the 9 weeks ended April 6, 2002 decreased 5 percent compared with sales of $2.0 billion for the same period ended April 7, 2001. The company?s year-to-date comparable store sales decreased 14 percent compared to a decrease of 9 percent in the prior year.

As of April 6, 2002, Gap Inc. operated 4,199 store concepts compared to 3,799 store concepts last year, which represents an increase of 11 percent. The number of stores by location totaled 3,112 compared to 2,939 stores by location last year, which represents an increase of 6 percent.

www.gapinc.com
11-4-2002

Gap Inc. Reports February Sales Down 8 Percent; Comparable Store Sales Down 17 Percent

Gap Inc. today reported sales of $720 million for the four-week period ended March 2, 2002, compared with sales of $784 million for the same period ended March 3, 2001, which represents a 8 percent decrease. The company’s comparable store sales for February 2002 were down 17 percent, compared to a 11 percent decrease in February 2001.

Comparable sales by division for February 2002 were as follows:

Gap Domestic: negative 24% versus negative 6% last year

Gap International: negative 22% versus negative 13% last year

Banana Republic: negative 10% versus negative 10% last year

Old Navy: negative 12% versus negative 17% last year

Commenting on February sales, CFO Heidi Kunz said, "Overall, February sales did not meet our expectations due to weak results at Gap and International, which were partially offset by better than anticipated results at Old Navy. Merchandise margins came in slightly ahead of expectations but remain below last year's levels."

As of March 2, 2002, Gap Inc. operated 4,176 store concepts compared to 3,740 store concepts last year, which represents an increase of 12 percent. The number of stores by location totaled 3,101 compared to 2,908 stores by location last year, which represents an increase of 7 percent.
www.gapinc.com
7-3-2002

Gap Inc. Announces Commitments Aggregating $1.3 Billion Toward Completion of New 2-year Secured Bank Facility

Gap Inc. today announced that it has received commitments from major commercial banks aggregating $1.3 billion towards the completion of a new 2-year secured bank facility. The new facility will replace the company's existing $1.3 billion 364-day bank facility, which expires in June 2002, as well as its $150 million facility expiring in June 2005. The new facility is subject to closing conditions and is expected to close the week of March 4, 2002.

"This new two-year bank facility will be an important part of our overall financial planning strategies," said John Lillie, Gap Inc.'s Vice Chairman.

"We are tightly managing our business by controlling variable expenses and reducing capital spending," Mr. Lillie said. "Our emphasis on cash management helps our brands focus on what's most important -- improving comparable stores sales by delivering the right product and shopping environments to our customers," Mr. Lillie said.

In addition to the new bank facility, last November the company issued $700 million in long-term debt which served to minimize reliance on short term financing. The company's total debt currently is about $2.0 billion. Upon closing its books for fiscal year 2001, which ended Feb. 2, 2002, Gap expects to have more than $800 million in cash on hand. The company also has announced a dramatic reduction in capital spending, from about $1.0 billion in 2001 to about $400 million in 2002.

The company plans to report fourth quarter and full-year earnings on Wednesday, Feb. 27. Following the market close, Gap Inc. President and CEO Millard Drexler, Mr. Lillie and CFO Heidi Kunz will participate in a live conference call and webcast. The webcast is available at www.gapinc.com.
February 14, 2002