The Gap, Inc. (GAP)
Net profit margin
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 844,000 | 502,000 | -202,000 | 256,000 | -665,000 |
| Revenue | US$ in thousands | 15,086,000 | 14,889,000 | 15,616,000 | 16,670,000 | 13,800,000 |
| Net profit margin | 5.59% | 3.37% | -1.29% | 1.54% | -4.82% |
February 1, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $844,000K ÷ $15,086,000K
= 5.59%
The net profit margin of The Gap, Inc. has shown fluctuations over the past five years. It was negative at -4.82% on January 30, 2021, indicating that the company had a net loss relative to its revenue during that period. The margin improved to 1.54% on January 29, 2022, signifying a move towards profitability. However, it declined to -1.29% on January 28, 2023, suggesting a return to negative profitability.
There was a significant turnaround on February 3, 2024, with the net profit margin rising to 3.37%, indicating improved profitability for the company. This positive trend continued on February 1, 2025, when the net profit margin further increased to 5.59%, reflecting an even stronger performance in terms of generating profit relative to revenue.
Overall, the upward trend in the net profit margin over the past two years suggests that The Gap, Inc. has been able to enhance its profitability and efficiency in generating profits from its operations. This improvement is a positive sign for the company's financial health and performance.
Peer comparison
Feb 1, 2025