Gap Inc. (NYSE: GPS) today announced that its Board of Directors approved a new $1 billion share repurchase authorization for the company’s common stock, reinforcing the company’s commitment to returning excess cash to shareholders.
The company repurchased approximately 20 million shares for about $790 million during the third quarter of fiscal year 2013, completing all but $100 million of its existing share repurchase authorization. The new repurchase authorization follows the company’s recent announcement to increase its annual dividend per share by one-third, from $0.60 to $0.80, representing the second increase in fiscal year 2013.
“We’re pleased to have distributed over $1.1 billion in cash to shareholders year-to-date through our increased dividend and meaningful share repurchase activity,” said Sabrina Simmons, EVP and chief financial officer of Gap Inc. “Both the new authorization and the recent dividend increase underscore the company’s commitment to returning cash to shareholders.”
Forward-Looking StatementsThis press release and related conference call and webcast contain 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:
- returning excess cash to shareholders;
- increase in annual dividends.
- the risk that the company does not repurchase some or all of the shares it anticipates purchasing pursuant to its repurchase program.