The Gap 2008 Annual Report Download - page 28

Item 6. Selected Financial Data.
The following selected financial data are derived from the Consolidated Financial Statements of the Company.
We have also included certain non-financial data to enhance your understanding of our business. In fiscal 2007,
we closed our Forth & Towne stores and, accordingly, the results of Forth & Towne have been presented as a
discontinued operation in the table below. The data set forth below should be read in conjunction with
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 and the
Company’s Consolidated Financial Statements and related notes herein.
Fiscal Year (number of weeks)
2008 (52) 2007 (52) 2006 (53) 2005 (52) 2004 (52)
Operating Results ($ in millions)
Netsales.......................................... $ 14,526 $ 15,763 $ 15,923 $ 16,019 $ 16,267
Grossmargin...................................... 37.5% 36.1% 35.5% 36.7% 39.2%
Operating margin (a) ............................... 10.7% 8.3% 7.7% 11.1% 12.2%
Earnings from continuing operations, net of income
taxes........................................... $ 967 $ 867 $ 809 $ 1,131 $ 1,150
Net earnings ...................................... $ 967 $ 833 $ 778 $ 1,113 $ 1,150
Cashdividendspaid................................ $ 243 $ 252 $ 265 $ 179 $ 79
Per Share Data (number of shares in millions)
Basic earnings per share:
Earnings from continuing operations ............ $ 1.35 $ 1.10 $ 0.97 $ 1.28 $ 1.29
Lossfromdiscontinuedoperation ............... $ — $ (0.05) $ (0.03) $ (0.02) $ —
Net earnings .................................. $ 1.35 $ 1.05 $ 0.94 $ 1.26 $ 1.29
Diluted earnings per share:
Earnings from continuing operations ............ $ 1.34 $ 1.09 $ 0.97 $ 1.26 $ 1.21
Lossfromdiscontinuedoperation ............... $ — $ (0.04) $ (0.04) $ (0.02) $ —
Net earnings .................................. $ 1.34 $ 1.05 $ 0.93 $ 1.24 $ 1.21
Weighted-average number of shares — basic ........ 716 791 831 881 893
Weighted-average number of shares — diluted ....... 719 794 836 902 991
Cashdividenddeclaredandpaid(b) ................. $ 0.34 $ 0.32 $ 0.32 $ 0.18 $ 0.09
Balance Sheet Information ($ in millions except
inventory per square foot)
Merchandise inventory ............................. $ 1,506 $ 1,575 $ 1,796 $ 1,696 $ 1,814
Totalassets ....................................... $ 7,564 $ 7,838 $ 8,544 $ 8,821 $ 10,048
Inventory per square foot (c) ........................ $ 34.7 $ 37.0 $ 43.7 $ 42.6 $ 47.8
Percentage increase (decrease) in inventory per square
foot ............................................ (6)% (15)% 3% (11)% 6%
Workingcapital ................................... $ 1,847 $ 1,653 $ 2,757 $ 3,297 $ 4,062
Total long-term debt and senior convertible notes, less
current maturities (d) ............................ $ — $ 50 $ 188 $ 513 $ 1,886
Stockholders’equity ............................... $ 4,387 $ 4,274 $ 5,174 $ 5,425 $ 4,936
Other Data ($ and square footage in millions)
Purchases of property and equipment ............... $ 431 $ 682 $ 572 $ 600 $ 419
Acquisition of business, net of cash acquired (e) ...... $142$—$—$—$—
Number of store locations opened ................... 101 214 194 198 130
Number of store locations closed .................... 119 178 116 139 158
Number of store locations open at year-end .......... 3,149 3,167 3,131 3,053 2,994
Percentage decrease in comparable store sales
(52-weekbasis) .................................. (12)% (4)% (7)% (5)% —
Square footage of store space at year-end (f) ......... 39.5 39.6 38.7 37.7 36.6
Percentage increase (decrease) in square feet (f) ...... (0.3)% 2.3% 2.7% 3.0% 0.3%
Number of employees at year-end ................... 134,000 141,000 154,000 153,000 152,000
16 Gap Inc. Form 10-K