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GAP

The Gap, Inc.

GAP

The Gap, Inc. • NYSE
$27.07 ▼ -1.67% (-0.46)
Market Cap $10.07 B
52w High $29.29
52w Low $16.99
Dividend Yield 0.65%
P/E 12.19
Volume 4.06M
Outstanding Shares 371.90M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $3.942B ▲ $1.336B ▲ $236M ▲ 5.987% ▲ $0.63 ▲ $462M ▲
Q2-2025 $3.725B ▲ $1.244B ▲ $216M ▲ 5.799% ▲ $0.58 ▲ $441M ▲
Q1-2025 $3.463B ▼ $1.188B ▼ $193M ▼ 5.573% ▲ $0.51 ▼ $407M ▼
Q4-2024 $4.149B ▲ $1.353B ▲ $206M ▼ 4.965% ▼ $0.53 ▼ $408M ▼
Q3-2024 $3.829B $1.28B $274M 7.156% $0.73 $508M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $2.517B ▲ $12.37B ▲ $8.723B ▲ $3.647B ▲
Q2-2025 $2.432B ▲ $12.146B ▲ $8.713B ▲ $3.433B ▲
Q1-2025 $2.22B ▼ $11.565B ▼ $8.244B ▼ $3.321B ▲
Q4-2024 $2.588B ▲ $11.885B ▲ $8.621B ▼ $3.264B ▲
Q3-2024 $2.219B $11.853B $8.718B $3.135B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $236M ▲ $299M ▼ $-163M ▼ $-66M ▲ $68M ▼ $153M ▼
Q2-2025 $216M ▲ $448M ▲ $-91M ▼ $-139M ▲ $218M ▲ $350M ▲
Q1-2025 $193M ▼ $-140M ▼ $-73M ▲ $-153M ▼ $-361M ▼ $-223M ▼
Q4-2024 $206M ▼ $616M ▲ $-116M ▲ $-128M ▼ $367M ▲ $499M ▲
Q3-2024 $274M $291M $-151M $-69M $69M $143M

Five-Year Company Overview

Income Statement

Income Statement Gap’s income statement shows a clear turnaround story. Sales have been fairly stable over the last few years, but the real change is in profitability. After swinging between losses and only modest profits earlier in the period, the company has moved to its strongest earnings in at least five years, with healthier operating and net income. This suggests better cost control, more disciplined promotions, and improved merchandising. The business still operates in a low‑margin, highly competitive space, so this improvement is encouraging but not yet a sign of a structurally “easy” profit engine. The key question going forward is whether these stronger margins are sustainable across fashion cycles and changing consumer demand.

Balance Sheet

Balance Sheet The balance sheet shows a company that has been quietly de‑risking. Total assets have edged down, hinting at a leaner footprint, while cash on hand has grown meaningfully in recent years, giving Gap more flexibility and a better cushion for downturns. Debt remains sizable but has drifted lower from earlier peaks, and shareholder equity has rebuilt after prior pressure, reflecting the recent return to profitability. Overall, the financial foundation looks sturdier than a few years ago, though leverage and the inherent volatility of apparel retail still matter as ongoing risks.

Cash Flow

Cash Flow Cash flow has improved substantially. Operating cash generation was weak and inconsistent earlier in the period, but the last two years show strong, steady cash coming in from the core business. Free cash flow has shifted from negative or marginal to clearly positive, even after ongoing investment in stores, technology, and infrastructure. Capital spending appears disciplined rather than aggressive. This combination of stronger, more reliable cash flow and controlled investment suggests Gap currently has more room to fund its strategy, manage debt, and navigate a softer consumer environment if needed.

Competitive Edge

Competitive Edge Gap’s competitive position rests on a wide, well-known brand portfolio and a value focus, but it operates in one of the toughest corners of retail. Old Navy is the main engine, targeting value-conscious families, while Gap, Banana Republic, and Athleta cover more style-driven and active categories. This breadth helps balance different customer segments and trends. Strong brand recognition and a large store base, combined with a robust online presence, are meaningful advantages. However, competition from fast-fashion players, e‑commerce specialists, and value retailers remains intense, putting constant pressure on prices, fashion relevance, and marketing. Gap’s ability to keep its brands culturally relevant and differentiate on experience, not just price, is central to its long-term strength.

Innovation and R&D

Innovation and R&D For a traditional apparel retailer, Gap is leaning notably hard into technology and data. Its partnership with Google Cloud and acquisitions like Drapr and CB4 are all aimed at using artificial intelligence to personalize shopping, improve fit and sizing, manage inventory more intelligently, and streamline product design. The company is also pushing a true omnichannel model—integrating stores, online, and loyalty programs—while investing in sustainability and exploring new, higher-margin categories like beauty and accessories. These moves could deepen customer loyalty and improve profitability if executed well. The risks lie in the complexity of rolling out new tech at scale, the cost of ongoing investment, and the uncertainty around how quickly new categories and digital features will translate into durable earnings.

Summary

Gap looks like a retailer in mid-comeback: no longer in clear distress, but still working to prove that its recent improvements can last. Profitability and cash generation have both strengthened meaningfully, the balance sheet is more resilient, and the company is investing in technology, omnichannel capabilities, and brand refreshes rather than just cutting its way to better numbers. At the same time, the broader environment—volatile consumer demand, fashion risk, and intense competition—remains challenging. The long-term picture will depend on whether Gap can keep its brands relevant, maintain margin discipline, successfully deploy AI and digital tools, and turn new initiatives like beauty and accessories into steady contributors, rather than one‑off boosts.

NEWS

November 20, 2025 · 4:15 PM UTC

Gap Inc. Reports Third Quarter Fiscal 2025 Results, Raises Full Year Outlook for Operating Margin

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November 12, 2025 · 4:15 PM UTC

Gap Inc. Announces Fourth Quarter Dividend

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October 30, 2025 · 4:15 PM UTC

Gap Inc. to Report Third Quarter Fiscal 2025 Results on November 20

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October 9, 2025 · 8:00 AM UTC

Gap Inc. Sets Out to Reimagine Retail Powered by Google Cloud's AI

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