The Gap, Inc. (GAP)

Gross profit margin

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Gross profit US$ in thousands 5,775,000 5,359,000 6,637,000 4,705,000 6,133,000
Revenue US$ in thousands 14,889,000 15,616,000 16,670,000 13,800,000 16,383,000
Gross profit margin 38.79% 34.32% 39.81% 34.09% 37.44%

February 3, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $5,775,000K ÷ $14,889,000K
= 38.79%

The gross profit margin of The Gap, Inc. has shown fluctuations over the past five years. In the most recent fiscal year, ending February 3, 2024, the gross profit margin improved significantly to 38.79% compared to the previous year's 34.32%. This indicates that the company was able to generate more revenue after accounting for the cost of goods sold.

The gross profit margin was also relatively high in the fiscal year ending January 29, 2022, at 39.81%. This suggests that the company effectively managed its production and inventory costs during that period.

Conversely, the gross profit margin was lower in the fiscal years ending January 30, 2021, and February 1, 2020, at 34.09% and 37.44% respectively. This could indicate challenges in controlling production costs or pricing strategies during those periods.

Overall, the varying gross profit margins of The Gap, Inc. over the past five years highlight the company's performance in managing its cost of goods sold relative to its revenue.