The Gap, Inc. (GAP)
Operating profit margin
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,112,000 | 560,000 | -69,000 | 810,000 | -862,000 |
| Revenue | US$ in thousands | 15,086,000 | 14,889,000 | 15,616,000 | 16,670,000 | 13,800,000 |
| Operating profit margin | 7.37% | 3.76% | -0.44% | 4.86% | -6.25% |
February 1, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,112,000K ÷ $15,086,000K
= 7.37%
The operating profit margin of The Gap, Inc. has experienced fluctuations over the past five years, with some years showing negative margins and others showing positive margins.
As of January 30, 2021, the company had an operating profit margin of -6.25%, indicating that its operating expenses were higher than its operating income.
By January 29, 2022, the operating profit margin improved significantly to 4.86%, suggesting that the company was able to control its operating costs and generate a higher operating profit relative to its revenues.
However, the following year, on January 28, 2023, the operating profit margin dipped to -0.44%, indicating a slight decline in profitability compared to the previous year.
Subsequently, on February 3, 2024, the company's operating profit margin rebounded to 3.76%, showing an improvement in operational efficiency and profitability.
The most recent data point, February 1, 2025, reflects an operating profit margin of 7.37%, indicating a substantial increase in profitability compared to the earlier years.
In conclusion, The Gap, Inc. has shown a mixed performance in terms of operating profit margins over the years, with efforts to improve profitability evident in certain periods.
Peer comparison
Feb 1, 2025