The Gap, Inc. (GAP)
Gross profit margin
| Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 6,208,000 | 5,958,000 | 5,775,000 | 5,527,000 | 5,480,000 | 5,477,000 | 5,359,000 | 5,458,000 | 5,610,000 | 6,103,000 | 6,637,000 | 6,782,000 | 6,741,000 | 6,067,000 | 4,705,000 | 4,711,000 | 4,650,000 | 5,057,000 | 6,133,000 | 6,104,000 |
| Revenue (ttm) | US$ in thousands | 15,173,000 | 15,001,000 | 14,889,000 | 14,834,000 | 15,106,000 | 15,415,000 | 15,616,000 | 15,898,000 | 15,802,000 | 16,156,000 | 16,670,000 | 16,569,000 | 16,620,000 | 15,684,000 | 13,800,000 | 14,050,000 | 14,054,000 | 14,784,000 | 16,383,000 | 16,332,000 |
| Gross profit margin | 40.91% | 39.72% | 38.79% | 37.26% | 36.28% | 35.53% | 34.32% | 34.33% | 35.50% | 37.78% | 39.81% | 40.93% | 40.56% | 38.68% | 34.09% | 33.53% | 33.09% | 34.21% | 37.44% | 37.37% |
August 3, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $6,208,000K ÷ $15,173,000K
= 40.91%
The gross profit margin of The Gap, Inc. has shown fluctuations over the past several quarters. The trend indicates a gradual decline from 37.44% in November 2019 to 33.53% in January 2021, followed by a slight increase to 40.91% in August 2024. The company experienced varying levels of profitability during this period, with the highest gross profit margin observed in recent quarters.
Factors influencing the fluctuations in the gross profit margin may include changes in pricing strategies, cost of goods sold, and sales volume. A higher gross profit margin suggests that the company is effectively controlling production costs relative to sales revenue. Conversely, a lower margin may indicate challenges in managing costs or pricing products competitively.
It is essential for The Gap, Inc. to continue monitoring and analyzing its gross profit margin to evaluate operational efficiency and profitability. By identifying the underlying reasons for the fluctuations, the company can make informed decisions to optimize its financial performance and maintain competitiveness in the retail industry.
Peer comparison
Aug 3, 2024