The Gap, Inc. (NYSE:GPS) Q1 2020 Earnings Conference Call - Final Transcript

Jun 04, 2020 • 05:00 pm ET

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The Gap, Inc. (NYSE:GPS) Q1 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Good afternoon, ladies and gentlemen. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the Gap, Inc. First Quarter 2020 Conference Call. [Operator Instructions]

I would now like to introduce your host, Tina Romani, Head of Investor Relations.

Executive
Tina Romani

Good afternoon, everyone. Welcome to Gap, Inc.'s first quarter 2020 earnings conference call. Before we begin, I'd like to remind you that the information made available on this webcast and conference call contains forward-looking statements. For information on factors that could cause our actual results to differ materially from the forward-looking statements, as well as the description and reconciliation of non-GAAP financial measures, as noted on our -- on Page 2 of the slide supplementing our remarks. Please refer to today's earnings press release as well as our current report on Form 8-K filed on April 23, 2020 and our subsequent filings with the SEC, all of which are available on gapinc.com. These forward-looking statements are based on information as of June 4, 2020, and we assume no obligation to publicly update or revise our forward-looking statements.

Joining me on the call today are President and CEO, Sonia Syngal; and Executive Vice President and CFO, Katrina O'Connell. As mentioned, we will be using slides to supplement our remarks, which you can view by going to the Investors section of gapinc.com.

With that, I'd like to turn the call over to Sonia.

Executive
Sonia Syngal

Thank you, Tina, and good afternoon, everyone. I hope you're joining us today in good health and that you're taking care during these challenging times. Before we jump into the results of our first quarter, I would be remiss to not address the situation that is top of mind for everyone across the United States with people of all backgrounds and beliefs coming together to drive social change.

As a company, we have an opportunity to create a world that is more inclusive, ensuring our brand serve as a force for good by being open to all, listening giving back to our community. While many peaceful protests have taken place across the country, in some cities, our stores have been taken advantage of and 20 stores have sustained extensive damage. We're fortunate that all of our teams are safe and we are working to reopen the impacted stores quickly and safely so we can serve our customers again.

Now, turning to Q1. As I transitioned into the CEO role, we were making good progress with momentum entering the quarter led by Old Navy and Athleta, only to be met almost immediately with a shelter in place orders that resulted in the closure of all of our North American stores. As we monitor the situation in China and then Europe, we moved quickly to respond to the looming spread of the virus across geographies, its implications on our business and the industry.

While there's no playbook to manage the fallout, the situation required a radical shift in our priorities. Starting