The Gap, Inc. GAP
- Market cap
- $7.7B
- P/E
- 6.4×
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Target Price Range
Analyst price targets
Free account| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 21.02 | 24.25 | 15.11 | 5.26 | 15.84 | 7.79 | 7.22 | 18.34 | 16.99 | 18.11 |
Analyst estimates 2027–2029 Powerpack |
Low Price
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| 35.24 | 35.68 | 31.39 | 26.99 | 37.63 | 19.06 | 22.08 | 30.59 | 29.29 | 29.36 |
High Price
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| 135,000 | 135,000 | 135,000 | 129,000 | 117,000 | 97,000 | 95,000 | 85,000 | 82,000 | 79,000 |
Employees
|
|||
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Revenue/Emp
|
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| 15,516 | 15,855 | 16,580 | 16,383 | 13,800 | 16,670 | 15,616 | 14,889 | 15,086 | 15,366 |
Revenue
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| 36.35% | 38.26% | 38.13% | 37.44% | 34.09% | 39.81% | 34.32% | 38.79% | 41.28% | 40.79% |
Gross Margin
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| 1,124 | 1,424 | 1,322 | 528 | (1,102) | 323 | (139) | 556 | 1,137 | 1,132 |
EBT
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| 7.24% | 8.98% | 7.97% | 3.22% | (7.99%) | 1.94% | (0.89%) | 3.73% | 7.54% | 7.37% |
EBT Margin
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| 676 | 848 | 1,003 | 351 | (665) | 256 | (202) | 502 | 844 | 816 |
Net Income
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| 602 | 499 | 519 | 559 | 550 | 518 | 546 | 522 | 500 | 496 |
Depreciation
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| 38.89 | 40.34 | 43.06 | 43.57 | 36.90 | 44.34 | 42.55 | 40.24 | 40.12 | 41.20 |
Revenue/Sh
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| 1.69 | 2.16 | 2.61 | 0.93 | (1.78) | 0.68 | (0.55) | 1.36 | 2.24 | 2.19 |
Earnings/Sh
|
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| 4.31 | 3.51 | 3.59 | 3.75 | 0.63 | 2.15 | 1.65 | 4.14 | 3.95 | 3.47 |
Cash Flow/Sh
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| (1.31) | (1.86) | (1.83) | (2.19) | (1.05) | (1.85) | (0.62) | (0.93) | (1.17) | (1.26) |
Capex/Sh
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| 3.00 | 1.65 | 1.76 | 1.56 | (0.41) | 0.31 | 1.04 | 3.21 | 2.78 | 2.21 |
Free CF/Sh
|
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| 7.28 | 8.00 | 9.23 | 8.82 | 6.99 | 7.24 | 6.08 | 7.01 | 8.68 | 10.19 |
Book Value/Sh
|
|||
| 399 | 393 | 385 | 376 | 374 | 376 | 367 | 370 | 376 | 373 |
Shares
|
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| 13.63 | 15.32 | 9.78 | 18.92 | 0.00 | 26.57 | 0.00 | 13.74 | 10.70 | 13.15 |
PE Ratio
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| 0.59 | 0.82 | 0.59 | 0.40 | 0.55 | 0.41 | 0.32 | 0.46 | 0.60 | 0.70 |
PS Ratio
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| 3.16 | 4.16 | 2.76 | 1.97 | 2.88 | 2.50 | 2.23 | 2.66 | 2.77 | 2.81 |
PB Ratio
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| 0.56 | 0.79 | 0.59 | 0.43 | 0.59 | 0.49 | 0.40 | 0.48 | 0.57 | 0.64 |
EV/Sales
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| 7.30 | 19.41 | 14.41 | 12.05 | (52.78) | 70.74 | 16.50 | 6.01 | 8.18 | 11.93 |
EV/FCF
|
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| 1,719 | 1,380 | 1,381 | 1,411 | 237 | 809 | 607 | 1,532 | 1,486 | 1,293 |
Op' Cash Flow
|
|||
| (524) | (731) | (705) | (825) | (392) | (694) | (227) | (344) | (440) | (470) |
Capex
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| 1,195 | 649 | 676 | 586 | (155) | 115 | 380 | 1,188 | 1,046 | 823 |
FCF
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| 1,862 | 2,107 | 2,077 | 1,307 | 2,124 | 1,088 | 1,361 | 1,299 | 1,947 | 2,477 |
Working Cap'
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| 1,313 | 1,249 | 1,249 | 2,169 | 3,047 | 2,218 | 2,503 | 1,488 | 1,490 | 1,492 |
Total Debt
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| (470) | (534) | (120) | 515 | 649 | 1,341 | 1,288 | (385) | (1,098) | (1,510) |
Net Debt
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| 2,904 | 3,144 | 3,553 | 3,316 | 2,614 | 2,722 | 2,233 | 2,595 | 3,264 | 3,801 |
Sh' Equity
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| 8.96% | 10.87% | 12.51% | 3.23% | (4.85%) | 1.93% | (1.67%) | 4.48% | 7.36% | 6.66% |
ROA
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| 30.58% | 35.42% | 24.80% | 9.36% | (16.51%) | 12.46% | (1.22%) | 15.84% | 32.09% | 30.42% |
ROIC
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| 24.81% | 28.04% | 29.95% | 10.22% | (22.43%) | 9.60% | (8.15%) | 20.80% | 28.81% | 23.10% |
ROE
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The Gap, Inc. peers in Apparel Retail
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| VSXY Victoria's Secret & Co. | $6.7B | 18.2× | Compare |
| URBN Urban Outfitters, Inc. | $6.4B | 11.6× | Compare |
| ANF Abercrombie & Fitch Company | $5.7B | 11.4× | Compare |
| LULU lululemon athletica inc. | $11.8B | 8.3× | Compare |
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| BOOT Boot Barn Holdings, Inc. | $3.8B | 15.5× | Compare |
| BURL Burlington Stores, Inc. | $16.0B | 22.9× | Compare |
| AEO American Eagle Outfitters, Inc. | $2.7B | 8.3× | Compare |
| BKE Buckle, Inc. (The) | $2.1B | 9.7× | Compare |
The Gap, Inc. (GAP) key facts
- The Gap, Inc. (GAP) is an Apparel Retail company in the Consumer Cyclical sector, listed on the New York Stock Exchange.
- The Gap, Inc.’s revenue for fiscal 2026 (year ended January 2026) was $15.4 billion, up 1.86% from fiscal 2025.
- Net income was $816.0 million, or $2.19 per share (basic), a net margin of 5.31%.
- As of September 25, 2026, GAP traded at $21.82, a market capitalization of $7.7 billion.
- At that price the stock trades at 6.4× trailing-twelve-month earnings and 0.5× sales.
- The Gap, Inc. pays an annual dividend of $0.60 per share, a yield of 2.94%.
- Return on equity was 23.1% and debt-to-equity 0.38.
The Gap, Inc. (GAP) Latest News
23 Sep
Gap Inc. is partnering with Just Your Type, a five-member pop boy band, in a multiyear deal to launch a band-co-created clothing collection, a national mall tour with live performances, and a co-produced docuseries. The collaboration is Gap’s first music venture under its Fashiontainment platform, blending content, licensing and partnerships. JYT, with more than 2 million followers, will meet fans in Gap stores and be dressed in Gap outfits during select performances. The collection is codesigned by the five members and debuts this fall. Gap will dress JYT at select shows. The move aims to revive growth under CEO Richard Dickson; shares have doubled since his arrival but are down about 16% this year due to inflation. Gap owns Old Navy, Banana Republic and Athleta. Expands brand strategy with cross-media exposure and live events, potentially boosting engagement and revenue.
Gap Inc. unveiled a multi-year Fashiontainment partnership with boy band Just Your Type (JYT), featuring a co-produced docuseries, a national mall tour, a capsule collection, and social content to engage younger consumers. The deal tests Gap's strategy of blending entertainment, content and fashion to deepen brand affinity. Near-term financial impact remains unclear and does not remove risks from margin pressure, discounting, tariffs and cost inflation. Kirsten Green, a venture investor focused on digitally native consumer brands, joined Gap's board, signaling emphasis on consumer behavior and brand reinvigoration while monitoring whether engagement can rise without sacrificing pricing power. Gap still faces mall-dependence headwinds. Gap projects about $16.4 billion in revenue and $1.0 billion in earnings by 2029, with a fair value around $26.24 and upside, though some analysts remain cautious on margins and promotions. Entertainment-led collaboration could meaningfully shift engagement and brand value, affecting margins and growth trajectory.
Gap Inc. trades around $21.46 after a 131% three-year rebound. Free cash flow in the last twelve months was about $1.06 billion, with analysts projecting high‑hundreds of millions annually going forward, underpinning a DCF intrinsic value well above the current price. Kirsten Green joining Gap’s board adds evident consumer-brand expertise that could affect cash-flow timing and durability. Bulls credit brand reinvestment (Old Navy, Gap, Banana Republic) for potential demand growth; bears warn that digital shifts and a large brick‑and‑mortar footprint will limit growth. The analysis highlights a valuation gap between the price and DCF estimates, stressing scrutiny of cash-flow durability. Three warning signs (one major) are noted before settling on valuation. Not financial advice; assessment based on historical data and forecasts. Board addition signals potential influence on cash-flow durability, enough to move sentiment but not guaranteed to alter the trajectory.
22 Sep
Gap Inc. launches a multiyear 'Fashiontainment' partnership with teen boy band Just Your Type (JYT). The deal includes a co-produced docuseries chronicling the band's rise, a national mall tour starting in October, and a Gap x JYT capsule collection codesigned by the group, plus social content across platforms tied to music and culture. JYT is a five-member, dance-forward act developed by Freddy Wexler, with more than 450 million views in the past 90 days and over 2 million social followers. Pam Kaufman, Gap's executive vice president and chief entertainment officer, leads the Fashiontainment initiative and has established an L.A.-based team. Gap will dress JYT for select performances and release the collection later this fall. The platform aims to deepen connections with audiences and drive sales and loyalty across Gap brands via storytelling, licensing, and experiences. Represents a major strategic push into entertainment-driven branding with potential to shift customer engagement and revenue mix across Gap brands.
Gap Inc. launches its first Fashiontainment partnership with emerging boy band JYT in a multi-year collaboration with Wexler Records and Republic Records. The initiative blends original content, live experiences, and fashion to deepen consumer fandom across Gap’s brands. It centers on a multi-episode docuseries chronicling JYT’s rise, a national mall tour, and a Gap capsule collection co-designed with the five members, with JYT dressing for select performances. The effort leverages Gap’s stores, online platforms and entertainment division led by Pam Kaufman, aiming to create multiple entry points into JYT’s world. Fall 2026 marks the collection drop; additional details will follow. Expansion into Fashiontainment broadens Gap's reach and could drive multi-channel engagement and sales.
15 Sep
Old Navy launches new subbrand as major strategic bet on activewear for The Gap, Inc. New subbrand launch under Old Navy marks major strategic expansion into high-growth activewear segment with potential to reshape revenues and positioning.
GAP posts 41.4% gross margin with open question whether expansion can continue through 2H 2026. Margin achievement at 41.4% may lift near-term results and sentiment yet leaves expansion trajectory unconfirmed.
6 Sep
Gap names new Old Navy CEO to reverse sluggish sales. Divisional CEO change targets Old Navy sales recovery with moderate expected effect on overall operations.
4 Sep
Jim Cramer highlighted major excitement at Gap Inc. (NYSE:GAP) regarding recent developments and performance. Cramer's commentary may lift short-term sentiment but lacks fundamental shifts in operations or strategy.
2 Sep
Gap (GAP) may be 16% undervalued following raised guidance that fuels valuation debate. Higher guidance signals improved outlook likely to influence financial results and investor sentiment without transforming company trajectory.
1 Sep
Gap Inc. raised its financial outlook despite ongoing struggles at Old Navy. Outlook raise points to better overall expectations while Old Navy weakness caps the positive effect.
31 Aug
Gap Inc. released Q2 2026 earnings call transcript covering quarterly results, guidance and operational updates. Earnings call content delivers financial results and outlook that directly move share price and investor views.
GAP stock rose 18% last week as Wall Street lifted price targets while monitoring an Old Navy turnaround. Analyst price target hikes and Old Navy turnaround signals point to moderate effects on sentiment and operations.
30 Aug
Only one of Gap Inc.'s four brands shows real growth, making the company's stock performance dependent on that brand's success. Dependence on single brand growth significantly affects Gap's stock and future performance.
28 Aug
Gap Inc. (GAP) stock surged 12.9% after reporting Q2 profits, appointing a new Old Navy CEO, and drawing increased hedge fund investments. Q2 profits and new Old Navy CEO represent major earnings strength plus strategic leadership shift that can significantly lift future performance and sentiment.
GAP Q2 results highlight margin expansion alongside diverging brand performances that shape the company's outlook. Q2 margin gains and brand divergence directly influence GAP profitability and strategic direction.
Gap raised its profit outlook, prompting questions over whether the stock can remain undervalued. Profit outlook raise signals stronger expected financial results that can shift Gap's valuation and investor sentiment.
Gap shares surge 15% after beating Q2 earnings expectations and raising guidance. Q2 earnings beat plus upward revision trigger 15% stock gain and signal stronger performance outlook.
Gap Inc. commits major resources to overhaul Old Navy brand operations and strategy in effort to restore growth and profitability. Large-scale turnaround push on flagship Old Navy division carries potential to materially shift Gap revenue trajectory and investor sentiment.
Gap shares surged 15% after the company raised its profit outlook, which outweighed a trimmed sales forecast. Abercrombie & Fitch shares ticked up. Raised profit outlook signals stronger future earnings and lifts Gap stock trajectory.
Gap lowers full-year sales guidance after Old Navy posts Q2 sales miss. Full-year sales outlook cut signals weaker demand and will pressure stock valuation and investor sentiment.
Gap shares rise after beating Q2 earnings expectations and raising full-year guidance. Earnings beat combined with raised full-year guidance directly improves Gap financial outlook and market sentiment.
Gap Inc. stock rose sharply on strong earnings, upbeat guidance and appointment of a new Old Navy CEO. Strong earnings beat and new Old Navy leadership signal improved operational momentum and investor sentiment for Gap.
Gap (GAP) shares soar today amid positive developments driving investor buying. Stock surge signals short-term market optimism without clear long-term strategic shifts.
Gap Inc. outlines strategies to reverse Old Navy's sales slump through adjusted merchandise, marketing shifts, and operational improvements. Turnaround plans for Old Navy may moderately affect Gap Inc. revenue and positioning but remain subject to execution and external factors.
Gap's EPS growth is expected to accelerate due to brand momentum and buybacks, according to UBS. UBS positive outlook on accelerating EPS points to moderate influence on Gap's near-term stock sentiment and operations.
Gap shoppers signal shifting consumer spending patterns amid economic pressures, offering investors clues on retail demand, discretionary purchases and potential effects on Gap sales and margins. Shopper insights directly inform near-term sales outlook and sentiment for Gap without indicating major strategic or structural shifts.
GAP stock surges toward its strongest day in 16 months as shares rise sharply, yet Wall Street analysts stay split on Old Navy growth outlook and prospects. Stock surge and split views on Old Navy signal moderate short-term sentiment shifts without altering core operations or long-term trajectory.
Gap appoints new Old Navy CEO, triggering immediate stock rally and lifting investor confidence. Old Navy CEO change drives short-term Gap stock gains without altering long-term company trajectory.
Old Navy is revising its marketing strategy after experiencing reduced customer traffic over the summer. Old Navy marketing overhaul directly targets summer traffic decline that affects Gap revenue trajectory.