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Gap Inc. sets third quarter dividend at 15 cents a share

EditorLina Guerrero
Published 08/13/2024, 04:51 PM
GAP
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SAN FRANCISCO - Gap Inc. (NYSE: NYSE:GPS) has declared a quarterly dividend of $0.15 per share for the third quarter of fiscal year 2024, as confirmed by the company's board of directors. The dividend is scheduled to be distributed on or after October 30, 2024, to shareholders who are on record as of the close of business on October 9, 2024.

In addition to the dividend announcement, the apparel retailer has reminded investors of the upcoming change to its stock ticker. Currently listed as "GPS", Gap Inc. will switch to the ticker symbol "GAP" on the New York Stock Exchange starting Thursday, August 22, 2024.

Gap Inc. is recognized as the largest specialty apparel company in the United States and is known for its portfolio of iconic brands, which includes Old Navy, Gap, Banana Republic, and Athleta. These brands provide a variety of clothing, accessories, and lifestyle products for a diverse customer base.

Since its inception in 1969, Gap Inc. has been influential in shaping cultural trends through its products and experiences, while also focusing on social responsibility towards employees, communities, and environmental sustainability. The company's net sales for the fiscal year 2023 amounted to $14.9 billion.

InvestingPro Insights

As Gap Inc. (NYSE: GPS) prepares to distribute its quarterly dividend, investors may find additional context in the company's financial performance and market position through recent data and insights from InvestingPro. The declared dividend of $0.15 per share reflects the company's commitment to returning value to shareholders, a practice it has maintained for 14 consecutive years. This consistency underscores Gap's financial discipline and shareholder-friendly policies, as noted in one of the InvestingPro Tips.

Analyzing the company's recent financial metrics, Gap Inc. reported a gross profit of $7.228 billion in the last twelve months as of Q1 2023, which translates to a healthy gross profit margin of 48.18%. Despite a slight decline in revenue growth of -2.69% during the same period, the company managed a significant EBITDA growth of 88.9%, showcasing its ability to improve earnings before interest, taxes, depreciation, and amortization. The P/E Ratio (Adjusted) stood at 11.88, which indicates that the stock may be reasonably valued in relation to the company's earnings.

Investors should also note that Gap Inc. is trading near its 52-week low, which could be an opportunity for those who believe in the company's long-term value proposition. This point, coupled with the company's low Price/Book multiple of 3.07, is highlighted as a key InvestingPro Tip. For investors seeking further insights, InvestingPro offers additional tips on Gap Inc. that can be accessed through the dedicated InvestingPro product page.

It's worth mentioning that Gap Inc. has experienced some volatility, as evidenced by a one-month price total return of -8.66%, but it's important to consider the broader picture, including the company's dividend yield of 2.7% as of the last dividend declaration date. With a forward-looking approach, investors may find such dips as potential buying opportunities, especially when they are backed by a solid track record of dividend payments.

For those interested in a deeper dive into Gap Inc.'s financials and market performance, additional InvestingPro Tips are available, providing a comprehensive analysis that can aid in making informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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