The Gap, Inc. (GAP) 10-Year Financial Performance & Capital Metrics

GAP • • Industrial / General

Consumer CyclicalApparel RetailYouth & Young Adult Fashion RetailersTeen & Young Adult Fashion Chains

AboutThe Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include denim, tees, fleece, and khakis; eyewear, jewelry, shoes, handbags, and fragrances; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, Athleta, and Banana Republic stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. As of December 31, 2021, the company had 2,835 company-operated stores and 564 franchise stores. It also provides its products through e-commerce sites. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.Show more

Revenue $15.09B +1.3%
EBITDA $1.61B +49.0%
Net Income $844M +68.1%
EPS (Diluted) 2.20 +64.2%
Gross Margin 41.28% +6.4%
EBITDA Margin 10.69% +47.0%
Operating Margin 7.37% +96.0%
Net Margin 5.59% +65.9%
ROE 28.81% +38.5%
ROIC 13.27% +108.6%
Debt/Equity 1.68 -20.0%
Interest Coverage 12.78 +105.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 19.2%
✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 2.1%
✓Efficient asset utilization: 1.3x turnover

✗Weaknesses

✗Thin 5Y average net margin of 0.9%

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-0.85%

5Y-1.64%

3Y-3.27%

TTM0.29%

Profit (Net Income) CAGR

10Y-3.94%

5Y19.18%

3Y48.83%

TTM3.4%

EPS CAGR

10Y-2.62%

5Y18.79%

3Y48.63%

TTM3.7%

ROCE

10Y Avg13.13%

5Y Avg3.96%

3Y Avg6.52%

Latest13.42%

Peer Comparison

Teen & Young Adult Fashion Chains

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
GESGuess', Inc.	879.28M	16.86	21.90	7.88%	2.56%	14.19%	4.05%	2.58
URBNUrban Outfitters, Inc.	6.33B	70.56	16.56	7.71%	8.15%	18.08%	5.06%	0.44
AEOAmerican Eagle Outfitters, Inc.	4.38B	25.81	15.36	1.27%	3.74%	12.76%	5.81%	0.82
BKEThe Buckle, Inc.	2.71B	52.97	13.62	-3.44%	16.12%	42.33%	7.37%	0.77
GAPThe Gap, Inc.	10.15B	27.28	12.40	1.32%	5.57%	23.33%	10.24%	1.68
ANFAbercrombie & Fitch Co.	4.94B	107.62	10.07	15.6%	10.07%	39.21%	10.69%	0.70

Profit & Loss

	Jan 2016	Jan 2017	Jan 2018	Jan 2019	Jan 2020	Jan 2021	Jan 2022	Jan 2023	Jan 2024	Jan 2025
Sales/Revenue+	15.8B	15.52B	15.86B	16.58B	16.38B	13.8B	16.67B	15.62B	14.89B	15.09B
Revenue Growth %	-0.04%	-0.02%	0.02%	0.05%	-0.01%	-0.16%	0.21%	-0.06%	-0.05%	0.01%
Cost of Goods Sold+	10.08B	9.88B	9.79B	10.26B	10.25B	9.1B	10.03B	10.26B	9.11B	8.86B
COGS % of Revenue	0.64%	0.64%	0.62%	0.62%	0.63%	0.66%	0.6%	0.66%	0.61%	0.59%
Gross Profit+	5.72B	5.64B	6.07B	6.32B	6.13B	4.71B	6.64B	5.36B	5.78B	6.23B
Gross Margin %	0.36%	0.36%	0.38%	0.38%	0.37%	0.34%	0.4%	0.34%	0.39%	0.41%
Gross Profit Growth %	-0.09%	-0.01%	0.08%	0.04%	-0.03%	-0.23%	0.41%	-0.19%	0.08%	0.08%
Operating Expenses+	4.2B	4.45B	4.59B	4.96B	5.56B	5.57B	5.83B	5.43B	5.21B	5.12B
OpEx % of Revenue	0.27%	0.29%	0.29%	0.3%	0.34%	0.4%	0.35%	0.35%	0.35%	0.34%
Selling, General & Admin	0	0	0	0	0	0	0	0	0	5.07B
SG&A % of Revenue	-	-	-	-	-	-	-	-	-	0.34%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	4.2B	4.45B	4.59B	4.96B	5.56B	5.57B	5.83B	5.43B	5.21B	43M
Operating Income+	1.52B	1.19B	1.48B	1.36B	574M	-862M	810M	-69M	560M	1.11B
Operating Margin %	0.1%	0.08%	0.09%	0.08%	0.04%	-0.06%	0.05%	-0%	0.04%	0.07%
Operating Income Growth %	-0.27%	-0.22%	0.24%	-0.08%	-0.58%	-2.5%	1.94%	-1.09%	9.12%	0.99%
EBITDA+	2.05B	1.78B	2.04B	1.94B	1.13B	-355M	1.31B	471M	1.08B	1.61B
EBITDA Margin %	0.13%	0.11%	0.13%	0.12%	0.07%	-0.03%	0.08%	0.03%	0.07%	0.11%
EBITDA Growth %	-0.21%	-0.13%	0.14%	-0.05%	-0.42%	-1.31%	4.7%	-0.64%	1.3%	0.49%
D&A (Non-Cash Add-back)	527M	593M	559M	578M	557M	507M	504M	540M	522M	500M
EBIT	1.53B	1.2B	1.5B	1.4B	604M	-910M	490M	-51M	646M	1.22B
Net Interest Income+	-53M	-67M	-55M	-40M	-46M	-182M	-162M	-70M	-4M	25M
Interest Income	6M	8M	19M	33M	30M	10M	5M	18M	86M	112M
Interest Expense	59M	75M	74M	73M	76M	192M	167M	88M	90M	87M
Other Income/Expense	-53M	-67M	-55M	-40M	-46M	-240M	-487M	-70M	-4M	25M
Pretax Income+	1.47B	1.12B	1.42B	1.32B	528M	-1.1B	323M	-139M	556M	1.14B
Pretax Margin %	0.09%	0.07%	0.09%	0.08%	0.03%	-0.08%	0.02%	-0.01%	0.04%	0.08%
Income Tax+	551M	448M	576M	319M	177M	-437M	67M	63M	54M	293M
Effective Tax Rate %	0.63%	0.6%	0.6%	0.76%	0.66%	0.6%	0.79%	1.45%	0.9%	0.74%
Net Income+	920M	676M	848M	1B	351M	-665M	256M	-202M	502M	844M
Net Margin %	0.06%	0.04%	0.05%	0.06%	0.02%	-0.05%	0.02%	-0.01%	0.03%	0.06%
Net Income Growth %	-0.27%	-0.27%	0.25%	0.18%	-0.65%	-2.89%	1.38%	-1.79%	3.49%	0.68%
Net Income (Continuing)	920M	676M	848M	1B	351M	-665M	256M	-202M	502M	844M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	2.23	1.69	2.14	2.59	0.93	-1.78	0.67	-0.55	1.34	2.20
EPS Growth %	-0.22%	-0.24%	0.27%	0.21%	-0.64%	-2.91%	1.38%	-1.82%	3.44%	0.64%
EPS (Basic)	2.24	1.69	2.16	2.61	0.93	-1.78	0.68	-0.55	1.36	2.24
Diluted Shares Outstanding	413M	400M	396M	388M	378M	374M	383M	367M	376M	384M
Basic Shares Outstanding	411M	399M	393M	385M	376M	373.6M	376M	367M	370M	376M
Dividend Payout Ratio	0.41%	0.54%	0.43%	0.37%	1.04%	-	0.88%	-	0.44%	0.27%

Balance Sheet

	Jan 2016	Jan 2017	Jan 2018	Jan 2019	Jan 2020	Jan 2021	Jan 2022	Jan 2023	Jan 2024	Jan 2025
Total Current Assets+	3.98B	4.32B	4.57B	4.25B	4.52B	6.01B	5.17B	4.62B	4.39B	5.2B
Cash & Short-Term Investments	1.46B	1.82B	1.78B	1.37B	1.65B	2.4B	877M	1.22B	1.87B	2.59B
Cash Only	1.37B	1.78B	1.78B	1.08B	1.36B	1.99B	877M	1.22B	1.87B	2.33B
Short-Term Investments	85M	41M	0	288M	290M	410M	0	0	0	253M
Accounts Receivable	282M	335M	282M	321M	393M	363M	399M	490M	325M	328M
Days Sales Outstanding	6.52	7.88	6.49	7.07	8.76	9.6	8.74	11.45	7.97	7.94
Inventory	1.87B	1.83B	2B	2.13B	2.16B	2.45B	3.02B	2.39B	2B	2.07B
Days Inventory Outstanding	67.84	67.63	74.46	75.83	76.77	98.36	109.79	85.01	79.9	85.16
Other Current Assets	163M	124M	111M	171M	165M	283M	270M	417M	207M	196M
Total Non-Current Assets+	3.49B	3.29B	3.42B	3.8B	9.16B	7.76B	7.6B	6.77B	6.65B	6.68B
Property, Plant & Equipment	2.85B	2.62B	2.81B	2.91B	8.52B	7.06B	6.71B	5.86B	5.68B	5.74B
Fixed Asset Turnover	5.54x	5.93x	5.65x	5.69x	1.92x	1.96x	2.48x	2.66x	2.62x	2.63x
Goodwill	180M	109M	109M	109M	109M	109M	207M	207M	207M	207M
Intangible Assets	92M	95M	95M	92M	121M	61M	90M	81M	54M	59M
Long-Term Investments	0	0	0	338M	17M	24M	25M	26M	32M	30M
Other Non-Current Assets	366M	475M	412M	685M	409M	533M	587M	620M	707M	650M
Total Assets+	7.47B	7.61B	7.99B	8.05B	13.68B	13.77B	12.76B	11.39B	11.04B	11.88B
Asset Turnover	2.11x	2.04x	1.98x	2.06x	1.20x	1.00x	1.31x	1.37x	1.35x	1.27x
Asset Growth %	-0.03%	0.02%	0.05%	0.01%	0.7%	0.01%	-0.07%	-0.11%	-0.03%	0.08%
Total Current Liabilities+	2.54B	2.45B	2.46B	2.17B	3.21B	3.88B	4.08B	3.26B	3.1B	3.26B
Accounts Payable	1.11B	1.24B	1.18B	1.13B	1.17B	1.74B	1.95B	1.32B	1.35B	1.49B
Days Payables Outstanding	40.28	45.94	44.04	40.07	41.81	69.95	70.98	46.97	54.03	61.31
Short-Term Debt	421M	65M	0	0	920M	831M	0	667M	0	632M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0
Other Current Liabilities	395M	446M	458M	543M	-159M	121M	939M	132M	710M	375M
Current Ratio	1.57x	1.76x	1.86x	1.96x	1.41x	1.55x	1.27x	1.42x	1.42x	1.60x
Quick Ratio	0.83x	1.01x	1.04x	0.98x	0.74x	0.92x	0.53x	0.68x	0.78x	0.96x
Cash Conversion Cycle	34.08	29.58	36.92	42.83	43.72	38.01	47.55	49.49	33.84	31.79
Total Non-Current Liabilities+	2.39B	2.25B	2.38B	2.32B	7.15B	7.27B	5.96B	5.9B	5.35B	5.37B
Long-Term Debt	1.31B	1.25B	1.25B	1.25B	1.25B	2.22B	1.48B	1.84B	1.49B	1.49B
Capital Lease Obligations	0	0	0	0	5.51B	4.62B	4.03B	3.52B	3.35B	3.35B
Deferred Tax Liabilities	256M	217M	91M	191M	152M	187M	198M	327M	0	0
Other Non-Current Liabilities	1.08B	1B	1.14B	1.07B	397M	-4.18B	445M	544M	512M	522M
Total Liabilities	4.93B	4.71B	4.84B	4.5B	10.36B	11.15B	10.04B	9.15B	8.45B	8.62B
Total Debt+	1.73B	1.31B	1.25B	1.25B	7.68B	7.66B	6.25B	6.02B	5.44B	5.47B
Net Debt	361M	-470M	-534M	168M	6.31B	5.68B	5.37B	4.8B	3.57B	3.14B
Debt / Equity	0.68x	0.45x	0.40x	0.35x	2.32x	2.93x	2.30x	2.70x	2.10x	1.68x
Debt / EBITDA	0.84x	0.74x	0.61x	0.64x	6.79x	-	4.76x	12.78x	5.03x	3.40x
Net Debt / EBITDA	0.18x	-0.26x	-0.26x	0.09x	5.58x	-	4.09x	10.20x	3.30x	1.95x
Interest Coverage	25.83x	15.88x	19.99x	18.66x	7.55x	-4.49x	4.85x	-0.78x	6.22x	12.78x
Total Equity+	2.54B	2.9B	3.14B	3.55B	3.32B	2.61B	2.72B	2.23B	2.6B	3.26B
Equity Growth %	-0.15%	0.14%	0.08%	0.13%	-0.07%	-0.21%	0.04%	-0.18%	0.16%	0.26%
Book Value per Share	6.16	7.26	7.94	9.16	8.77	6.99	7.11	6.08	6.90	8.50
Total Shareholders' Equity	2.54B	2.9B	3.14B	3.55B	3.32B	2.61B	2.72B	2.23B	2.6B	3.26B
Common Stock	20M	20M	19M	19M	19M	19M	19M	18M	19M	19M
Retained Earnings	2.44B	2.75B	3.08B	3.48B	3.26B	2.5B	2.62B	2.14B	2.42B	3.04B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	85M	54M	36M	53M	40M	9M	38M	48M	43M	60M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Jan 2016	Jan 2017	Jan 2018	Jan 2019	Jan 2020	Jan 2021	Jan 2022	Jan 2023	Jan 2024	Jan 2025
Cash from Operations+	1.59B	1.72B	1.38B	1.38B	1.41B	237M	809M	607M	1.53B	1.49B
Operating CF Margin %	0.1%	0.11%	0.09%	0.08%	0.09%	0.02%	0.05%	0.04%	0.1%	0.1%
Operating CF Growth %	-0.25%	0.08%	-0.2%	0%	0.02%	-0.83%	2.41%	-0.25%	1.52%	-0.03%
Net Income	920M	676M	848M	1B	351M	-665M	256M	-202M	502M	844M
Depreciation & Amortization	527M	531M	499M	517M	557M	507M	504M	540M	522M	500M
Stock-Based Compensation	76M	76M	87M	91M	68M	77M	139M	37M	80M	126M
Deferred Taxes	127M	-58M	61M	65M	-81M	-137M	-61M	42M	-64M	27M
Other Non-Cash Items	-165M	111M	-13M	-53M	206M	627M	438M	-7M	-8M	-4M
Working Capital Changes	44M	321M	-162M	-303M	310M	-172M	-467M	197M	500M	-7M
Change in Receivables	0	0	0	0	0	0	0	0	0	0
Change in Inventory	-6M	46M	-142M	-154M	4M	-305M	-593M	554M	383M	-88M
Change in Payables	-47M	146M	-90M	-78M	66M	564M	186M	-540M	42M	137M
Cash from Investing+	-730M	-529M	-666M	-1B	-894M	-510M	-446M	-227M	-334M	-692M
Capital Expenditures	-726M	-524M	-731M	-705M	-1.04B	-392M	-694M	-685M	-420M	-447M
CapEx % of Revenue	0.05%	0.03%	0.05%	0.04%	0.06%	0.03%	0.04%	0.04%	0.03%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-4M	-5M	65M	-9M	220M	2M	-5M	458M	77M	2M
Cash from Financing+	-990M	-777M	-731M	-749M	-560M	895M	-1.47B	6M	-567M	-321M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-377M	-367M	-361M	-373M	-364M	0	-226M	-220M	-222M	-225M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	23M	11M	12M	22M	4M	-48M	2M	-1M	5M	-21M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	868M	1.2B	649M	676M	366M	-155M	115M	-78M	1.11B	1.04B
FCF Margin %	0.05%	0.08%	0.04%	0.04%	0.02%	-0.01%	0.01%	-0%	0.07%	0.07%
FCF Growth %	-0.39%	0.38%	-0.46%	0.04%	-0.46%	-1.42%	1.74%	-1.68%	15.26%	-0.07%
FCF per Share	2.10	2.99	1.64	1.74	0.97	-0.41	0.30	-0.21	2.96	2.71
FCF Conversion (FCF/Net Income)	1.73x	2.54x	1.63x	1.38x	4.02x	-0.36x	3.16x	-3.00x	3.05x	1.76x
Interest Paid	78M	82M	76M	76M	76M	145M	180M	76M	74M	63M
Taxes Paid	452M	488M	570M	143M	176M	20M	215M	0	49M	237M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	33.29%	24.81%	28.04%	29.95%	10.22%	-22.43%	9.6%	-8.15%	20.8%	28.81%
Return on Invested Capital (ROIC)	39.92%	33.46%	43.98%	32.27%	6.45%	-7.22%	7.41%	-0.68%	6.36%	13.27%
Gross Margin	36.21%	36.35%	38.26%	38.13%	37.44%	34.09%	39.81%	34.32%	38.79%	41.28%
Net Margin	5.82%	4.36%	5.35%	6.05%	2.14%	-4.82%	1.54%	-1.29%	3.37%	5.59%
Debt / Equity	0.68x	0.45x	0.40x	0.35x	2.32x	2.93x	2.30x	2.70x	2.10x	1.68x
Interest Coverage	25.83x	15.88x	19.99x	18.66x	7.55x	-4.49x	4.85x	-0.78x	6.22x	12.78x
FCF Conversion	1.73x	2.54x	1.63x	1.38x	4.02x	-0.36x	3.16x	-3.00x	3.05x	1.76x
Revenue Growth	-3.88%	-1.78%	2.18%	4.57%	-1.19%	-15.77%	20.8%	-6.32%	-4.66%	1.32%

Frequently Asked Questions

Valuation & Price

The Gap, Inc. (GAP) has a price-to-earnings (P/E) ratio of 12.4x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

The Gap, Inc. (GAP) reported $15.28B in revenue for fiscal year 2024. This represents a 5% increase from $14.55B in 2011.

The Gap, Inc. (GAP) grew revenue by 1.3% over the past year. Growth has been modest.

Yes, The Gap, Inc. (GAP) is profitable, generating $851.0M in net income for fiscal year 2024 (5.6% net margin).

Dividend & Returns

Yes, The Gap, Inc. (GAP) pays a dividend with a yield of 2.15%. This makes it attractive for income-focused investors.

The Gap, Inc. (GAP) has a return on equity (ROE) of 28.8%. This is excellent, indicating efficient use of shareholder capital.

The Gap, Inc. (GAP) generated $779.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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