San Francisco-based The Gap Inc. reported a significant improvement in its operating performance through the first three quarters of fiscal year 2024, stemming from its improved inventory management, reduced promotional activity, and lower selling, general, and administrative (SG&A) expenses. Specifically, the company expanded its S&P Global Ratings-adjusted EBITDA margins to 18.6% in the third quarter of 2024 from 16.0% the year prior. Therefore, we revised our outlook on Gap Inc. to positive from stable and affirmed all of our ratings on the company, including the 'BB' issuer credit rating and our 'BB' issue-level rating on its senior unsecured notes. The positive outlook reflects Gap Inc.'s improved operating performance and leverage, which lead us to expect it will enhance its execution
