Gap Inc. Approves New $1 Billion Share Repurchase Authorization and Plans to Increase 2012 Dividend
Gap Inc. (NYSE: GPS) today announced that its Board of Directors approved cash distribution strategies focused on delivering value to its shareholders.
Gap Inc.’s Board of Directors approved a new $1 billion share repurchase authorization and approved a plan to increase the annual dividend per share by 11 percent, from $0.45 in fiscal year 2011 to $0.50 for fiscal year 2012.
“Even against the tough business environment in 2011, we generated over $800 million in free cash flow and returned more than $2.3 billion through share repurchases and dividends,” said Sabrina Simmons, chief financial officer of Gap Inc. “Today's announcements underscore our continued commitment to delivering value to our shareholders through cash distributions.”
With this announcement, Gap Inc. will have nearly tripled its dividend since 2005. The first quarterly dividend of $0.125 per share was declared for payment on or after April 27, 2012 to shareholders of record at the close of business on April 5, 2012. Additional quarterly dividends are expected to be paid in July, October and January.
The announcement of the new $1 billion share repurchase authorization replaces the previously announced authorization, which had $441 million remaining as of today. Since October 2004, the company has distributed close to $13 billion in cash to shareholders, spending more than $11 billion in share repurchases, retiring about 570 million shares. In fiscal 2011, the company repurchased 111 million shares for $2.1 billion.
SEC Regulation G
This press release includes the non-GAAP measure free cash flow, which under SEC Regulation G we are required to reconcile with GAAP. Please see the reconciliation of free cash flow, a non-GAAP financial measure, to the GAAP financial measure in the table at the end of this release.
This press release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," "project," and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the following:
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company's actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following:
Additional information regarding factors that could cause results to differ can be found in the company's Annual Report on Form 10-K for the fiscal year ended January 29, 2011, as well as the company's subsequent Quarterly Reports on Form 10-Q.
Forward-looking statements are based on information as of February 23, 2012. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
About Gap Inc.
Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. Fiscal year 2011 net sales were $14.5 billion. Gap Inc. products are available for purchase in over 90 countries worldwide through about 3,000 company-operated stores, about 200 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.
Investor Relations Contact:
Mike Jenkins, 415-427-4454
Media Relations Contact:
Stacy Rollo, 415-420-8203
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