The Gap, Inc. (GAP)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,137,000 | 1,083,000 | 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 |
| 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 |
| Pretax margin | 7.54% | 7.11% | 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% |
February 1, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,137,000K ÷ $15,086,000K
= 7.54%
The pretax margin of The Gap, Inc. has shown a mix of negative and positive trends over the past few years. Starting from negative percentages in the range of -6.99% to -10.20% in 2020, the company experienced significant improvement with positive margins in 2021 and 2022, peaking at 4.48% in July 2021. However, the pretax margin dipped back into negative territory in the latter part of 2022 (-3.08%).
In early 2023, there was a slight recovery with pretax margin registering at 0.37% in April 2023, steadily improving to 7.54% in February 2025. This upward trend suggests that the company's profitability before tax has gradually strengthened, showing promising signs of financial performance. Maintaining and further enhancing this positive trajectory will be crucial for The Gap, Inc. to ensure sustainable profitability and financial health in the future.
Peer comparison
Feb 1, 2025