The Gap, Inc. announced unaudited consolidated earnings results for the first quarter ended May 4, 2013. For the quarter, the company reported, net sales of $3,739 million compared with $3,487 million for the first quarter last year. Operating income was $530 million compared to $395 million a year ago. Income before income taxes was $530 million compared to $373 million a year ago. Comparable sales increased 2% compared with a 4% increase in the first quarter last year. Net earnings were up $100 million, or 43%, compared with the first quarter last year. Net income was $333 million or $0.71 per diluted share compared to $233 million or $0.47 per diluted share a year ago. Purchases of property and equipment were $151 million compared to $148 a year ago. Net cash provided by operating activities was $356 million compared to $364 million a year ago. Free cash flow was $205 million compared to $216 million a year ago. The company reaffirmed its fiscal year 2013 diluted earnings per share guidance of $2.52 to $2.60.

The Gap, Inc. announced in the fiscal year 2013, the company expects to open about 160 company-operated stores, focused on Athleta, Gap China, Old Navy Japan, and global outlet stores. Given its focus on growing through new channels and geographies, the company continues to expect square footage to increase about 1% in fiscal year 2013. The company also announced that it expects to close about 80 company-operated stores. The closures are weighted towards Gap North America, consistent with the company's previously stated strategy.

The Gap, Inc. announced that its Board of Directors authorized a quarterly dividend of $0.15 per share payable on or after July 31, 2013 to shareholders of record at the close of business on July 10, 2013.