The Gap 2012 Annual Report Download - page 12

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Dear Shareholders,
I’m pleased to share our 2012 business
update for Gap Inc. – highlighted by
both strong results and significant
progress on the company’s long-term
strategic plan.
This past year, we introduced our company’s mission: to be the world’s favorite for
American style. Our customers embody this passion on the pages of this report, and
our 136,000 employees are united to achieve this mission. Our performance over the
past 12 months demonstrated a successful balance of improving key  nancial metrics
while making considerable inroads in the global expansion of our portfolio of brands.
This combination enabled us to increase our revenue in 2012 by $1.1 billion, an out stand-
ing achievement.
A continued focus was in our online, Outlet and International businesses. As evidence
of this success, sales for our Direct division grew 24 percent to a record-high $1.9 billion.
We added nine more franchise countries, matching the most in any single year, and
our  eet of franchise stores exceeds 300. We now have more than 40 stores in China,
including our  rst four Outlet stores to complement our  agship Gap locations.
2012 was particularly important because we set the stage for future growth with a
number of targeted, new investments. In Japan, we launched both our e-commerce
channel as well as our  rst Old Navy store abroad. In North America, Athleta stores
expanded to 35 locations, while Piperlime, with its online selection of curated, on-trend
product from hundreds of labels, tested its  rst store concept in New York City. And we
ended the year by acquiring multi-brand retailer, Intermix, enabling us to compete in
the rapidly-growing luxury and contemporary market.
All of these investments were layered on the foundation of an improved domestic
business. We bolstered the marketing platforms for each brand, refreshed a record
number of  agship stores in major cities, and increased the speed in our supply chain.
Gap Outlet, Shanghai, China
Gap Franchise, Panama City, Panama
Gap, New York City, US