Gap Inc. 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.”