Banana Republic 2011 Annual Report Download - page 34

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• In fiscal 2011, we generated free cash flow of $815 million compared with free cash flow of $1.2 billion for fiscal
2010. Free cash flow is defined as net cash provided by operating activities less purchases of property and
equipment. For a reconciliation of free cash flow, a non-GAAP financial measure, from a GAAP financial measure,
see the Liquidity and Capital Resources section.
• During fiscal 2011, we repurchased about 111 million shares for $2.1 billion.
Our business and financial priorities for fiscal 2012 are as follows:
• improve sales with healthy merchandise margins;
• invest in our business while maintaining discipline; and
• return excess cash to shareholders.
As we focus on stabilizing comparable store sales in fiscal 2012, we also plan to grow revenues through the following:
• opening additional stores, many of which will be outlets, in Asia, Canada, and Europe;
• continuing to open franchise stores worldwide; and
• opening additional Athleta stores.
Results of Operations
Net Sales
Net sales primarily consist of retail sales, online sales, and wholesale and franchise revenues.
See Item 8, Financial Statements and Supplementary Data, Note 15 of Notes to Consolidated Financial Statements
for net sales by brand, region, and reportable segment.
Comparable Sales
Beginning in fiscal 2011, the Company reports comparable (“Comp”) sales including the associated comparable
online sales. Accordingly, Comp sales for fiscal 2010 have been recalculated to conform to fiscal 2011 presentation.
The percentage change in Comp sales by brand and region and for total Company, including the associated
comparable online sales, as compared with the preceding year, is as follows:
Fiscal Year
2011 2010
Gap North America ........................................................................... (4)% — %
Old Navy North America ....................................................................... (3)% 3%
Banana Republic North America ................................................................ (1)% 3%
International ................................................................................. (7)% 2%
TheGap,Inc. ................................................................................. (4)% 2%
The percentage change in Comp store sales by brand and region and for total Company, excluding the associated
comparable online sales, as compared with the preceding year, is as follows:
Fiscal Year
2011 2010
Gap North America ............................................................................ (6)% (1)%
Old Navy North America ........................................................................ (6)% 2%
Banana Republic North America ................................................................. (2)% 3%
International .................................................................................. (9)% 1%
TheGap,Inc. .................................................................................. (6)% 1%
20 Gap Inc. Form 10-K