The Gap, Inc. (GAP)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 972,000 | 784,000 | 556,000 | 295,000 | 213,000 | 57,000 | -139,000 | -104,000 | -487,000 | -80,000 | 323,000 | 408,000 | 744,000 | 344,000 | -1,102,000 | -1,433,000 | -1,345,000 | -1,033,000 | 528,000 | 1,147,000 |
| 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 |
| Pretax margin | 6.41% | 5.23% | 3.73% | 1.99% | 1.41% | 0.37% | -0.89% | -0.65% | -3.08% | -0.50% | 1.94% | 2.46% | 4.48% | 2.19% | -7.99% | -10.20% | -9.57% | -6.99% | 3.22% | 7.02% |
August 3, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $972,000K ÷ $15,173,000K
= 6.41%
The pretax margin of The Gap, Inc. has displayed fluctuations over the past several quarters. The pretax margin increased from 5.23% in May 4, 2024, to 6.41% in Aug 3, 2024, showing improved profitability during this period. However, these figures are still lower compared to the pretax margin of 7.02% reported in Nov 2, 2019.
The pretax margin reached its lowest point at -10.20% in Jan 30, 2021, indicating a significant loss-making period for the company. Subsequently, there was a positive trend in profitability, with margins moving into positive territory, reaching 3.22% in Feb 1, 2020, and further climbing to 7.02% in Nov 2, 2019.
Overall, the pretax margin trend suggests that The Gap, Inc. has been working towards improving its profitability, with some fluctuations in performance observed in recent quarters. Continued monitoring of the company's financial health and operational efficiency would be prudent to assess its future profitability prospects.
Peer comparison
Aug 3, 2024