The Gap, Inc.
- Open
- 22.98
- Day high
- 23.25
- Day low
- 22.23
- Prev close
- 23.48
- Volume
- 13.6M
- Mkt cap
- $7.8B
- P/E (TTM)
- 6.5
- EPS (TTM)
- $3.42
- P/B
- 2.0
- P/S
- 0.5
- Yield
- 3.05%
- Per share
- $0.68
The Gap, Inc. (GAP) is a Consumer Cyclical company listed on NYSE. The stock is up 1% over the past year. Drillr has 1 published research article covering GAP.
The Gap, Inc. (GAP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
GAP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 27, 2026 | $0.48 | $0.52 | +8.1% | $3.7B | -1.2% |
| May 28, 2026 | $0.39 | $0.38 | -3.1% | $3.5B | -0.5% |
| Mar 5, 2026 | $0.46 | $0.45 | -1.7% | $4.2B | +18.9% |
| Nov 20, 2025 | $0.59 | $0.62 | +4.7% | $3.9B | +1.1% |
| Aug 28, 2025 | $0.55 | $0.57 | +2.9% | $3.7B | -0.3% |
| May 29, 2025 | $0.45 | $0.51 | +12.9% | $3.5B | +1.3% |
| Mar 6, 2025 | $0.36 | $0.54 | +50.0% | $4.1B | +1.5% |
| Nov 21, 2024 | $0.58 | $0.72 | +24.1% | $3.8B | +0.5% |
| Aug 29, 2024 | $0.40 | $0.54 | +35.0% | $3.7B | +2.6% |
| May 30, 2024 | $0.14 | $0.41 | +192.9% | $3.4B | +3.1% |
| Mar 7, 2024 | $0.20 | $0.49 | +145.0% | $4.3B | +2.0% |
| Nov 21, 2023 | $0.20 | $0.58 | +191.4% | $3.8B | +4.4% |
GAP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 25, 2026 | DICKSON RICHARDdirector, officer: President & CEO, Gap Inc. | Option | 116,502 | — |
| Aug 25, 2026 | DICKSON RICHARDdirector, officer: President & CEO, Gap Inc. | Tax | 62,852 | $19.80 |
| Aug 25, 2026 | DICKSON RICHARDdirector, officer: President & CEO, Gap Inc. | Option | 109,649 | — |
| Aug 25, 2026 | DICKSON RICHARDdirector, officer: President & CEO, Gap Inc. | Tax | 59,155 | $19.80 |
| Jul 2, 2026 | FISHER WILLIAM SYDNEYdirector, 10 percent owner: | Option | 1,744 | — |
| Jul 2, 2026 | FISHER WILLIAM SYDNEYdirector, 10 percent owner: | Option | 19,036 | — |
| Jul 2, 2026 | FISHER WILLIAM SYDNEYdirector, 10 percent owner: | Option | 1,743 | — |
| Jul 2, 2026 | FISHER ROBERT Jdirector, 10 percent owner: | Option | 1,744 | — |
| Jul 2, 2026 | FISHER ROBERT Jdirector, 10 percent owner: | Option | 1,743 | — |
| Jul 2, 2026 | FISHER ROBERT Jdirector, 10 percent owner: | Option | 19,036 | — |
| Jul 1, 2026 | Hall Kathryn A.director | Grant | 1,283 | — |
| Jul 1, 2026 | MILES AMY Edirector | Grant | 9,903 | — |
| Jul 1, 2026 | Gerson Jodydirector | Grant | 7,814 | — |
| Jul 1, 2026 | FISHER WILLIAM SYDNEYdirector, 10 percent owner: | Grant | 1,283 | — |
| Jul 1, 2026 | FISHER WILLIAM SYDNEYdirector, 10 percent owner: | Grant | 9,903 | — |
Source: GAP SEC Form 4 filings, latest Aug 25, 2026. For informational purposes only — not investment advice.
See the full GAP insider & 13F page →The Gap, Inc. company profile
Overview
The Gap, Inc. (NYSE:GPS) is a multinational clothing and accessories retailer founded in 1969 and headquartered in San Francisco, California. The company went public in 1980 and has evolved from a single store selling jeans and records to one of the world's largest specialty apparel retailers. Gap operates through four primary brands: Old Navy, Gap, Banana Republic, and Athleta, serving customers across different price points and demographics through approximately 2,835 company-operated stores and 564 franchise locations worldwide, complemented by a robust e-commerce platform.
Business
The Gap operates in the specialty apparel retail industry, which involves designing, sourcing, marketing, and selling clothing and accessories directly to consumers. The company's business spans four distinct brands that target different market segments: Old Navy represents the company's largest revenue generator, accounting for approximately 58% of total sales. This brand focuses on affordable, trend-driven casual wear for the entire family, including basics like denim, t-shirts, and activewear. Old Navy targets value-conscious consumers seeking fashionable clothing at accessible price points, typically ranging from $5 to $50 per item. Gap Brand contributes roughly 20% of revenues and represents the company's heritage brand, focusing on classic American casual wear with a contemporary twist. Gap emphasizes premium basics, denim, and lifestyle pieces that appeal to consumers seeking quality fundamentals with cultural relevance, generally priced higher than Old Navy but remaining accessible to middle-market consumers. Banana Republic generates approximately 12% of sales and serves as the company's premium lifestyle brand. It offers sophisticated workwear, elevated casual pieces, and accessories targeting professionals and affluent consumers willing to pay higher prices for refined styling and superior materials. Athleta accounts for about 8% of revenues and specializes in women's athletic and lifestyle apparel. The brand competes in the rapidly growing activewear market, offering yoga, training, and sports apparel designed for active women who value both performance and style. The company operates through multiple channels including physical retail stores, e-commerce websites, franchise partnerships, and third-party marketplace arrangements. Gap's retail footprint spans North America, Asia, Europe, Latin America, the Middle East, and Africa through both company-operated and franchised locations.
Revenue model
Gap generates revenue primarily through direct product sales across its retail channels, operating on a traditional retail markup model where products are sourced from third-party manufacturers and sold at margins typically ranging from 40-60% above cost. The company's revenue streams include sales from company-operated stores, e-commerce platforms, franchise fees and royalties, and third-party partnerships. The company's profitability depends heavily on several key factors. Inventory management significantly impacts margins, as the fashion retail industry requires careful balance between having sufficient stock to meet demand while minimizing markdowns on unsold merchandise. Gap has demonstrated improved discipline in this area, with inventory reductions of 16% year-over-year contributing to gross margin expansion. Sourcing and manufacturing costs represent another critical margin driver. The company sources products globally, with manufacturing concentrated in Asia, though it has been diversifying its supply chain to reduce dependency on China to less than 3% by 2025. Tariff policies, particularly those affecting Chinese imports, pose significant cost pressures, with management estimating $250-300 million in gross incremental costs from recent tariff implementations. Promotional intensity directly affects profitability, as excessive discounting erodes margins. Gap has focused on reducing promotional dependency through better product-market fit and inventory discipline, leading to improved full-price sell-through rates across brands. Store productivity and real estate costs influence overall profitability, particularly as the company optimizes its physical footprint while investing in digital capabilities. The shift toward omnichannel retail requires balancing store economics with e-commerce fulfillment costs. Labor costs and operational efficiency impact margins, especially as minimum wage increases affect store operations. The company has invested in technology and automation to improve operational leverage while managing these cost pressures.
Competitive moat
Gap's competitive moat is relatively modest in the highly competitive apparel retail industry. The company's primary defensive characteristics include brand recognition and customer loyalty, particularly for Old Navy and the Gap brand, which have established emotional connections with consumers over decades. Old Navy's position as a value leader in family apparel provides some protection through its ability to offer trend-relevant clothing at accessible price points. The company's scale advantages in sourcing and supply chain management provide cost efficiencies that smaller competitors cannot easily replicate. Gap's global sourcing network and established relationships with manufacturers enable better pricing and quality control. Additionally, the company's omnichannel capabilities and established e-commerce infrastructure create operational advantages in serving customers across multiple touchpoints. However, Gap faces significant competitive pressures that limit its moat strength. The apparel retail industry has low barriers to entry, with new direct-to-consumer brands regularly emerging and gaining market share through digital-first strategies. Fast fashion retailers like Zara, H&M, and Shein compete aggressively on both price and trend responsiveness, often bringing styles to market faster than traditional retailers. E-commerce giants like Amazon have expanded their private label apparel offerings, leveraging their logistics capabilities and customer data to compete effectively. Additionally, athleisure specialists like Lululemon and Nike have captured significant market share in categories where Gap competes, particularly affecting Athleta's growth prospects. The company's moat is further challenged by changing consumer preferences toward more sustainable and socially conscious brands, requiring ongoing investment in supply chain transparency and environmental initiatives. Overall, while Gap maintains certain competitive advantages, its moat is narrow and requires continuous brand reinvention and operational excellence to defend market position.
Risks & safety
Gap maintains a moderate margin of safety with mixed financial health indicators: **Liquidity Position:** • Strong cash position of $2.0 billion provides substantial liquidity buffer • Current ratio of 1.71 indicates adequate short-term liquidity coverage • Quick ratio of 0.98 shows reasonable ability to meet immediate obligations without inventory liquidation **Debt and Solvency:** • Debt-to-equity ratio of 1.65 reflects moderate leverage levels • Total liabilities of $5.4 billion against $11.6 billion in total assets • Negative free cash flow of -$223 million in Q1 2025 raises some concern about cash generation **Valuation Metrics:** • P/E ratio of 11.2x appears reasonable for current earnings • EV/EBITDA of 11.7x suggests moderate valuation • Price-to-book ratio of 2.6x indicates stock trades above tangible book value **Other Considerations:** • Seasonal cash flow patterns typical for retail business • Exposure to tariff costs estimated at $250-300 million annually • Ongoing brand reinvigoration investments required for competitive positioning
Recent development
Over the past few years, Gap has undergone significant strategic transformation focused on three core priorities: financial and operational rigor, brand reinvigoration, and platform strengthening. The company has demonstrated remarkable operational improvement, expanding gross margins to their highest levels in 20 years through disciplined inventory management and reduced promotional dependency. Brand reinvigoration efforts have shown particular success with Old Navy achieving eight consecutive quarters of market share gains and Gap Brand returning to positive comparable sales growth for six consecutive quarters. The company hired creative director Zac Posen to enhance design capabilities and cultural relevance across brands. Old Navy has successfully expanded into the activewear category, becoming the #5 player in active apparel, while Gap Brand has reconnected with younger consumers through strategic collaborations and social-first marketing approaches. Operational transformation includes establishing an AI innovation office, hiring a new Chief Technology Officer, and modernizing digital capabilities. The company has also diversified its sourcing footprint to reduce dependency on China to less than 3% by year-end 2025, partly in response to tariff pressures. Athleta faces ongoing challenges despite management's reset efforts, with the brand experiencing inconsistent comparable sales performance. The company continues to invest in new design talent and marketing strategies to reactivate core customers and maintain its #3 position in women's activewear. Financial discipline has been a key theme, with the company reducing SG&A expenses by $300 million, improving inventory turns, and generating strong free cash flow in most recent periods. The company has also returned capital to shareholders through dividend increases and share repurchases while maintaining investment in growth initiatives.
GAP company profile · for informational purposes only — not investment advice.
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