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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 696 |
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In 2005, Gap Inc. was able to reduce their operating expense by deciding not to run their holiday television ads. They also reduced their bonuses to employees which further decreased their operating expense. CEO Fisher summed up Gap Inc.’s financial situation in the 2006 Annual Report by stating that “we increased our expenses during the year with the expectation that revenue would riseâ€...
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This expectation did not come true and net earnings dropped 30% or $335 million less than 2005 net earnings. He also explained that Gap Inc. lost many talented people and needs to recruit leaders in key positions particularly in design and merchandising.
Common-size Comparative Balance Sheets
Common-size comparative balance sheets for Gap Inc...
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