The Gap, Inc. (NYSE:GPS) Q4 2023 Earnings Call Transcript

Alex Straton: That’s helpful. Thanks a lot. Maybe Katrina, one for you. Just on the guidance for the year, it looks like you have margin improvement following the first quarter. Can you just talk about what enables that?

Katrina O’Connell: Yes. I would say broadly, as I think about margins for 2024, we have commodity benefits that come in the first-half of the year. Those become largely neutral. And then really, we’re just anniversarying the benefits from last year in the significant improvement that we saw in promotions. So, we’ll see where everything lands, but the guidance, as you say, was 50 — at least 50 basis points of expansion versus last year for the year and at least 100 basis points of expansion for first quarter.

Alex Straton: Thanks a lot.

Operator: Thank you.

Richard Dickson: Thank you.

Operator: We’ve reached the end of the question-and-answer session. That does conclude today’s conference call. Thank you for your participation and you may now disconnect.