The Gap, Inc. (GAP)
Pretax margin
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,137,000 | 556,000 | -139,000 | 323,000 | -1,102,000 |
| Revenue | US$ in thousands | 15,086,000 | 14,889,000 | 15,616,000 | 16,670,000 | 13,800,000 |
| Pretax margin | 7.54% | 3.73% | -0.89% | 1.94% | -7.99% |
February 1, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $1,137,000K ÷ $15,086,000K
= 7.54%
The pretax margin of The Gap, Inc. has shown fluctuations over the past five years as follows:
- January 30, 2021: -7.99%
- January 29, 2022: 1.94%
- January 28, 2023: -0.89%
- February 3, 2024: 3.73%
- February 1, 2025: 7.54%
The negative pretax margin in January 30, 2021, indicates that the company's expenses exceeded its revenues before accounting for taxes. The subsequent improvement in pretax margin to 1.94% in January 29, 2022, suggests that the company managed its expenses more effectively and generated higher revenues.
However, the pretax margin declined to -0.89% on January 28, 2023, indicating a decrease in profitability or possibly higher expenses relative to revenues. The positive trend resumed in the following years with pretax margins of 3.73% in February 3, 2024, and 7.54% in February 1, 2025, indicating a significant improvement in profitability, possibly due to enhanced cost management or revenue growth strategies.
Peer comparison
Feb 1, 2025