-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HYSBfVSvdHpH/6W8eSVv+Um+UIbIKHsrpCGLN+Af+QdkO8sJLWRXP0sOjktEEZc7 53YSECsvPqrq32w9cdLnlw== 0000929624-00-000711.txt : 20000516 0000929624-00-000711.hdr.sgml : 20000516 ACCESSION NUMBER: 0000929624-00-000711 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000511 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GAP INC CENTRAL INDEX KEY: 0000039911 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FAMILY CLOTHING STORES [5651] IRS NUMBER: 941697231 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07562 FILM NUMBER: 636032 BUSINESS ADDRESS: STREET 1: ONE HARRISON CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 4159524400 MAIL ADDRESS: STREET 1: ONE HARRISON STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: GAP STORES INC DATE OF NAME CHANGE: 19850617 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ---------------------------------------------- Date of Report (Date of earliest event reported) May 11, 2000 THE GAP, INC. (Exact name of registrant as specified in its charter) Delaware 1-7562 94-1697231 - ------------------------ ------------------------ --------------------------------- (State of incorporation) (Commission File Number) (IRS Employer Identification No.)
One Harrison San Francisco, California 94105 - ---------------------------------------- ---------------- (Address of principal executive offices) (Zip Code) (415) 427-2000 ------------------------------- (Registrant's telephone number, including area code) N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. In connection with the registrant's Registration Statement (Form S-3), Registration No. 333-70991, the registrant is filing herewith the documents listed in Item 7 below and such documents are incorporated by reference into such Registration Statement. Item 7. Exhibits 12.1 Statement Setting Forth Computation of Ratio of Earnings to Fixed Charges 99 Press Release dated May 11, 2000 1 SIGNATURE 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 hereunto duly authorized. THE GAP, INC. (Registrant) Date: May 15, 2000 By: /s/ Heidi Kunz --------------------------------- Heidi Kunz Executive Vice President and Chief Financial Officer 2 EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 12.1 Statement Setting Forth Computation of Ratio of Earnings to Fixed Charges 99 Press Release dated May 11, 2000 3 EX-12.1 2 COMPUTATION OF RATIO OF EARNINGS Exhibit 12.1 Computation of Ratio of Earnings to Fixed Charges
-------------------------- Thirteen Weeks Ended --------------------------------------------------------------------- -------------------------- Feb 3, 1996 Feb 1, 1997 Jan. 31, 1998 Jan. 30, 1999 Jan. 29, 2000 Apr 29, 2000 May 01, 1999 --------------------------------------------------------------------- -------------------------- Earnings Before Income Taxes 585,199 748,527 854,242 1,319,262 1,784,949 370,829 323,792 Add: Interest Expense 5,490 5,529 17,779 46,145 44,968 11,503 7,963 Interest on rental expense 195,168 218,403 250,025 288,143 337,471 86,855 74,387 -------------------------------------------------------------------- -------------------------- Earnings 785,857 972,459 1,122,046 1,653,550 2,167,388 469,187 406,142 ==================================================================== ========================== Interest Expense 5,490 5,529 17,779 46,145 44,968 11,503 7,963 Capitalized Interest - 8,564 12,186 10,982 24,900 8,330 4,328 Interest on rental expense 195,168 218,403 250,025 288,143 337,471 86,855 74,387 -------------------------------------------------------------------- -------------------------- Fixed Charges 200,658 232,496 279,990 345,270 407,339 106,688 86,678 ==================================================================== ========================== Ratio of Earnings to Fixed Charges 3.92 4.18 4.01 4.79 5.32 4.40 4.69
EX-99 3 PRESS RELEASE DATED MAY 11, 2000 Exhibit 99 GAP INC. REPORTS STRONG FIRST QUARTER EARNINGS GROWTH; EARNINGS PER SHARE UP 23 PERCENT ON SALES GAIN OF 20 PERCENT SAN FRANCISCO, CA, - May 11, 2000 - Gap Inc. (NYSE-GPS) today announced record sales and earnings for the first quarter which ended Apr. 29, 2000. Earnings per share during the quarter rose 23 percent to $0.27 versus $0.22 the prior year. First quarter net sales rose 20 percent to $2.7 billion, compared with $2.3 billion in 1999. Comparable store sales decreased 2 percent versus an 11 percent increase last year. During the first quarter, the company's comparable store sales by division were as follows: . Gap Domestic turned in a negative mid-single digit versus a positive mid-single digit last year . Gap International had a positive mid-single digit versus positive high- twenties last year . Banana Republic had a positive mid-single digit versus positive low- teens last year . Old Navy turned in a negative low-single digit versus positive low- twenties last year. Total first quarter sales growth has averaged 30 percent during the past three years; comparable store sales increases have averaged 9 percent. Net earnings increased 16 percent in the first quarter to $235 million compared with $202 million last year. After-tax return on sales was 8.6 percent, down 30 basis points from last year. Millard S. Drexler, president and chief executive officer, said, "We had a strong quarter. Despite a slow Easter, we posted record results, with earnings per share up 23 percent in the first quarter over a 47 percent increase last year. Gap, Banana Republic and Old Navy all had positive earnings growth. These results show the strength of our brands and our management team in driving long- term growth." Store count and square footage at quarter end for 2000 and 1999 were as follows: April 29, 2000 May 1, 1999 - -------------------------------------------------------------------------- Number of Sq. Ft. Number of Sq. Ft. Stores (millions) Stores (millions) - -------------------------------------------------------------------------- Gap Domestic 1,812 10.6 1,533 9.1 - -------------------------------------------------------------------------- Gap International 433 2.4 326 1.6 - -------------------------------------------------------------------------- Banana Republic 354 2.7 295 2.1 - -------------------------------------------------------------------------- Old Navy 546 9.8 420 6.7 - -------------------------------------------------------------------------- Total 3,145 25.5 2,574 19.5 - -------------------------------------------------------------------------- Increase 22% 31% 16% 22% Webcast and Conference Call Information Heidi Kunz, executive vice president and chief financial officer, will host a summary of Gap Inc.'s first quarter results in a live conference call and real- time webcast, which is accessible via www.gapinc.com. The webcast is located in the Performance Section under Sales and Earnings and will begin at 8:30 a.m. Eastern Time today. All interested parties may also attend via the conference call at 800-374-0168. For international users, please dial 706-634-0994. Replay will be made available on www.gapinc.com and 1-800-GAP NEWS for two weeks after this announcement. Copyright Information The conference call and webcast will be simultaneously recorded on behalf of Gap Inc. and consist of copyrighted material. They may not be re-recorded, reproduced, retransmitted or rebroadcast without Gap Inc.'s express written permission. Your participation represents your consent to these terms and conditions, which are governed under California Law. Your participation on the call also constitutes your consent to having any comments or statements you make appear on any transcript or broadcast of this call. Forward-Looking Statements The information made available in this press release contains certain forward- looking statements that reflect Gap Inc.'s current view of future events and financial performance. Wherever used, the words "expect," "plan," "anticipate," "believe" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, ongoing competitive pressures in the apparel industry, risks associated with challenging international retail environments, changes in the level of consumer spending or preferences in apparel, trade restrictions and political or financial instability in countries where the company's goods are manufactured, disruption to operations from Year 2000 issues and/or other factors that may be described in the company's annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict. Attachment A Gap Unaudited Inc. Condensed Consolidated Balance Sheets - ------------------------------------------------ ($000) April 29, May 1, 2000 1999 - ------------------------------------------------ ASSETS Current Assets Cash and equivalents $ 436,172 $ 456,107 Merchandise inventory 1,652,049 1,198,497 Prepaid expenses and other current assets 315,709 263,927 - ------------------------------------------------- Total Current Assets 2,403,930 1,918,531 Property and equipment, net 2,905,064 1,997,900 Lease rights and other assets 348,597 211,441 - ------------------------------------------------- Total Assets $5,657,591 $4,127,872 ================================================= LIABILITIES AND SHAREHOLDERS' EQUITY - ----------------------------------------------------------------------- ($000) April 29, May 1, 2000 1999 - ----------------------------------------------------------------------- Current Liabilities Notes payable $ 631,461 $ 97,834 Accounts payable and accrued expenses 1,374,920 1,284,520 Deferred lease credits and other current liabilities 22,656 15,185 - ----------------------------------------------------------------------- Total Current Liabilities 2,029,037 1,397,539 Long-Term Liabilities Long-term debt 769,287 545,045 Deferred lease credits and other liabilities 431,473 347,517 - ----------------------------------------------------------------------- Total Long-Term Liabilities 1,200,760 892,562 Shareholders' Equity 2,427,794 1,837,771 - ----------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $5,657,591 $4,127,872 ======================================================================= Attachment B Gap Unaudited Inc. Condensed Consolidated Statements of Earnings - ------------------------------------------------------------------------- ($000 April 29, Percentage May 1, Percentage except per 2000 to Sales 1999 to Sales share amounts) - ------------------------------------------------------------------------- Net sales $ 2,731,990 100.0 $ 2,277,734 100.0 - ------------------------------------------------------------------------- Costs and Expenses Cost of goods sold and occupancy expenses 1,601,905 58.6 1,334,155 58.6 Operating expenses 750,303 27.5 615,149 27.0 Net interest expense 8,953 0.3 4,638 0.2 - ------------------------------------------------------------------------- Earnings before income taxes 370,829 13.6 323,792 14.2 Income taxes 135,353 5.0 121,422 5.3 - ------------------------------------------------------------------------- Net Earnings $ 235,476 8.6 $ 202,370 8.9 - ------------------------------------------------------------------------- Weighted average number of shares - basic 850,325,670 854,464,568 Weighted average number of shares - diluted 888,020,166 900,043,739 - ------------------------------------------------------------------------- Earnings per share - basic $ 0.28 $ 0.24 Earnings per share - diluted $ 0.27 $ 0.22 - ------------------------------------------------------------------------- Number of stores open at end of period 3,145 2,574 Total square footage at end of period 25,519,300 19,517,136 ========================================================================= -----END PRIVACY-ENHANCED MESSAGE-----