Gap Financial Report
2005 annual report
table of contents
Letter From the Chairman Letter to Shareholders Gap Banana Republic Old Navy Forth & Towne Gap Inc. Direct Social Responsibility Financial Highlights Key Financial Statistics Gap Inc. Financials 1 2 6 7 8 9 10 11 12 13 14
letter from the chairman
Fiscal 2005 was a year of progress as well as challenges.
During a year where we had disappointing top line results, we still delivered solid earnings and focused on creating value for our shareholders by repurchasing 99 million shares for $2 billion and doubling our dividend. We continued to improve our financial strength and ended the year with $3 billion of cash and investments. And we made notable progress against our longer term growth initiatives, including the launch of Forth & Towne and the development of an entirely new e-commerce platform. We fully recognize, however, that our long-term success depends on growing our top line. Gap Inc.’s Board of Directors is highly aligned in the priority of heritage is based on supporting management to improve the business and with people through generate revenue growth over time. Under the leadership of Paul Pressler, Gap Inc. has built a strong foundation. along the way. We are a more disciplined and well-managed company today and the Board remains confident that this foundation is a competitive advantage as we work to re-connect with customers across each of our brands. I am pleased with the progress the Board has made over the past year—both from a governance year— both perspective and as the governing body of this company. We are a diverse group with experience that spans disciplines, industries and geographies. Even with such varied experiences, I believe the Board works well together — and is asking the tough questions necessary to challenge and guide management in the best interest of our shareholders. In 2005, the Board maintained its commitment to continually evolve and adopt appropriate governance best practices. For
table of contents
Letter From the Chairman Letter to Shareholders Gap Banana Republic Old Navy Forth & Towne Gap Inc. Direct Social Responsibility Financial Highlights Key Financial Statistics Gap Inc. Financials 1 2 6 7 8 9 10 11 12 13 14
letter from the chairman
Fiscal 2005 was a year of progress as well as challenges.
During a year where we had disappointing top line results, we still delivered solid earnings and focused on creating value for our shareholders by repurchasing 99 million shares for $2 billion and doubling our dividend. We continued to improve our financial strength and ended the year with $3 billion of cash and investments. And we made notable progress against our longer term growth initiatives, including the launch of Forth & Towne and the development of an entirely new e-commerce platform. We fully recognize, however, that our long-term success depends on growing our top line. Gap Inc.’s Board of Directors is highly aligned in the priority of heritage is based on supporting management to improve the business and with people through generate revenue growth over time. Under the leadership of Paul Pressler, Gap Inc. has built a strong foundation. along the way. We are a more disciplined and well-managed company today and the Board remains confident that this foundation is a competitive advantage as we work to re-connect with customers across each of our brands. I am pleased with the progress the Board has made over the past year—both from a governance year— both perspective and as the governing body of this company. We are a diverse group with experience that spans disciplines, industries and geographies. Even with such varied experiences, I believe the Board works well together — and is asking the tough questions necessary to challenge and guide management in the best interest of our shareholders. In 2005, the Board maintained its commitment to continually evolve and adopt appropriate governance best practices. For