“With a year of transition behind us, I’m confident that we have the right strategies in place to fuel our long-term growth,” said Art Peck, chief executive officer, Gap Inc. “We made significant progress in 2015 transforming our product operating model, enabling us to be more responsive to trends and market conditions, and consistently deliver on-brand product collections.”

Highlights

• Athleta grew to 120 stores, opening 15 in 2016
• $870mm of free cash flow
• Returned $1.4bn to shareholders

Comparable Sales Results

• Gap Inc. down 4% (versus 0% last year) (-6% for Gap vs. -5% last year, -10% for Banana vs flat last year, 0% Old Navy versus +5% last year)

Guidance (FY16)

• EPS: $2.20 – $2.25 (vs $2.43 FY15)
• Operating Margin: 9.5% (vs 9.6% FY15)
• Capital Expenditures: $650mm (for mobile & supply chain capabilities)
• Depreciation and Amortization: $560mm
• Store Openings (Net): 40 (the company expects store openings to be focused on greater China, global outlet stores and Athleta)

Other Announcements

• BoD approved $1bn share repurchase authorization
• $0.92 dividend per share in FY16 ($0.23 FQ1 16)

Link to filing