The Gap 2009 Annual Report Download - page 2

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“If there is one secret of
success for our company,
it is always to focus on
the customer…”
Don Fisher, Co-founder
1928 – 2009 Dear Shareholders,
In 2009, our company turned a corner—
delivering double-digit earnings per
share increases for the third year in a row
and securing a foundation for growth.
It wasn’t easy. Because of the economic climate, customers ap-
proached their buying decisions with more caution and we had to
compete that much harder across our portfolio of brands.
To help us succeed, we renewed our long-standing commitment of
connecting with our customers—a passion that started with our
founders, Doris and Don Fisher.
For me and our employees, 2009 was a bittersweet year. Our com-
pany turned around just as we lost Don. He passed away in
September, a month after we celebrated our 40th anniversary.
I had a chance to visit Don just a few weeks before he died. He was
incredibly proud because he felt that, as a company, we had our
confidence back. And he was right yet again—I know our employees
are determined to win.
Delivering results
Our formula of focusing on cost management, healthy merchandise
margins and strong cash generation continued to serve us well.
In 2009, we increased our earnings-per-share 18 percent. We ended
the year with $2.3 billion of cash on the balance sheet and no debt.
In 2010, we’re continuing our practice of returning cash to share-
holders, increasing our planned dividend 18 percent and authorizing
a new $1 billion share repurchase program.