The Gap, Inc. (GAP)

Net profit margin

Feb 1, 2025 Nov 2, 2024 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
Net income (ttm) US$ in thousands 844,000 823,000 767,000 678,000 502,000 44,000 108,000 -58,000 -202,000 55,000 -379,000 -72,000 256,000 506,000 753,000 433,000 -665,000 -1,083,000 -1,038,000 -808,000
Revenue (ttm) US$ in thousands 15,086,000 15,235,000 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
Net profit margin 5.59% 5.40% 5.06% 4.52% 3.37% 0.30% 0.71% -0.38% -1.29% 0.35% -2.40% -0.45% 1.54% 3.05% 4.53% 2.76% -4.82% -7.71% -7.39% -5.47%

February 1, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $844,000K ÷ $15,086,000K
= 5.59%

The net profit margin of The Gap, Inc. has shown fluctuations over the analyzed period. The company experienced negative net profit margins in FY 2020 and early FY 2021, with margins ranging from -7.71% to -4.82%. However, there was a gradual improvement in profitability starting in May 2021, with positive net profit margins recorded in subsequent quarters. By February 2025, the net profit margin reached its peak at 5.59%.

Overall, The Gap, Inc. has demonstrated an ability to enhance its profitability over time, as indicated by the positive trend in net profit margins in recent quarters. This improvement suggests that the company may have successfully implemented strategic initiatives to boost its bottom line performance.