Gap Inc (GAP) FinancialsGAPGap Inc

The Gap, Inc. (GAP) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Store Sales, accounting for 65.2% of total sales, equivalent to $2.38B. Another important revenue stream is Online Sales. Understanding this composition is critical for investors evaluating how GAP navigates market cycles within the Apparel & Accessories Retailers industry.

Evaluating the bottom line, The Gap, Inc. maintains a gross margin of 46.81%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 15.68%, while the net margin is 13.72%. These profitability ratios, combined with a Return on Equity (ROE) of 33.78%, provide a clear picture of how effectively GAP converts its operational activities into shareholder value.

In the context of the broader market, GAP competes directly with industry leaders such as URBN and VSXY. With a market capitalization of $8.18B, it holds a leading position in the sector. When comparing efficiency, GAP's gross margin of 46.81% stands against URBN's 43.42% and VSXY's 47.11%. Such benchmarking helps identify whether The Gap, Inc. is trading at a premium or discount relative to its financial performance.

Gap has shown consistent revenue growth, with Q3 2026 revenue of $3.94 billion and a net income of $236 million. The gross margin is expected to improve significantly to 52.83% in Q2 2027, indicating strong profitability potential.