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Upturn AI SWOT - About
GAP 
The Gap, Inc. (GAP)
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Upturn Advisory Summary
04/01/2025: GAP (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 47.71% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.36B USD | Price to earnings Ratio 11.03 | 1Y Target Price 27.69 |
Price to earnings Ratio 11.03 | 1Y Target Price 27.69 | ||
Volume (30-day avg) 10281812 | Beta 2.37 | 52 Weeks Range 18.54 - 29.98 | Updated Date 03/27/2025 |
52 Weeks Range 18.54 - 29.98 | Updated Date 03/27/2025 | ||
Dividends yield (FY) 2.63% | Basic EPS (TTM) 2.02 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 5.06% | Operating Margin (TTM) 7.88% |
Management Effectiveness
Return on Assets (TTM) 5.66% | Return on Equity (TTM) 29.71% |
Valuation
Trailing PE 11.03 | Forward PE 13.26 | Enterprise Value 11864518799 | Price to Sales(TTM) 0.55 |
Enterprise Value 11864518799 | Price to Sales(TTM) 0.55 | ||
Enterprise Value to Revenue 0.78 | Enterprise Value to EBITDA 7.81 | Shares Outstanding 375067008 | Shares Floating 193030880 |
Shares Outstanding 375067008 | Shares Floating 193030880 | ||
Percent Insiders 40.96 | Percent Institutions 64.56 |
Analyst Ratings
Rating 3.65 | Target Price 27.69 | Buy 5 | Strong Buy 5 |
Buy 5 | Strong Buy 5 | ||
Hold 9 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
The Gap, Inc.
Company Overview
History and Background
The Gap, Inc. was founded in 1969 by Donald and Doris Fisher in San Francisco. Initially focused on selling jeans and records, it expanded to offer a wider range of clothing. Key milestones include the introduction of private-label apparel, international expansion, and the launch of multiple brands like Old Navy and Banana Republic.
Core Business Areas
- Gap: Offers classic American style clothing for men, women, and children. Operates globally through retail stores, online, and franchise agreements.
- Old Navy: Provides affordable, family-friendly apparel and accessories. Known for its value pricing and promotional offers. Primarily operates in North America and online.
- Banana Republic: Focuses on sophisticated, upscale clothing and accessories for men and women. Aims for a polished, modern aesthetic.
- Athleta: Offers performance apparel and accessories for women, with a focus on fitness and wellness. Emphasis on sustainable and inclusive designs.
Leadership and Structure
The Gap, Inc. is led by a CEO and a board of directors. The organizational structure includes various departments such as merchandising, marketing, operations, and finance, each reporting to senior management.
Top Products and Market Share
Key Offerings
- Jeans (Gap & Old Navy): Core denim products across various brands. Gap competes with Levi's (LEVI) and American Eagle (AEO) in this segment. Market share varies significantly by sub-segment and geography, but Gap is a significant player in the overall denim market.
- T-Shirts & Casual Tops (Gap & Old Navy): Basic apparel staples for all ages. Old Navy and Gap faces heavy competition from many private label brands from Target (TGT) and Walmart (WMT), as well as brands such as Uniqlo and H&M.
- Athletic Apparel (Athleta): Performance wear for women including yoga pants, leggings, and active tops. Competitors include Lululemon (LULU), Nike (NKE), and Adidas (ADS).
- Workwear (Banana Republic): Business casual clothing and accessories, catering to professionals. Competitors include J.Crew, Ann Taylor, and department store private labels.
Market Dynamics
Industry Overview
The apparel industry is highly competitive and fragmented, with ongoing shifts in consumer preferences, digital transformation, and sustainability concerns. Fast fashion, e-commerce, and athleisure trends are reshaping the market landscape.
Positioning
The Gap, Inc. holds a mid-tier position within the apparel market, leveraging its brand recognition and broad product portfolio. However, it faces challenges from both fast-fashion retailers and premium brands. Competitive advantages include its established brand equity and large store network.
Total Addressable Market (TAM)
The global apparel market is valued at over $1.5 trillion. Gap, Inc. targets various segments within this TAM, including denim, casual wear, and athleisure, with different penetration rates across these markets. Gap's positioning allows it to address a significant portion of this TAM, but market share varies by segment and geography.
Upturn SWOT Analysis
Strengths
- Strong brand recognition (Gap, Old Navy, Banana Republic, Athleta)
- Extensive retail footprint
- Established supply chain
- Diverse product portfolio
- Growing online presence
Weaknesses
- Inconsistent brand image and product quality
- Over-reliance on promotional discounting
- Declining store traffic
- Slow adaptation to changing consumer preferences
- High operating costs
Opportunities
- Expansion into new markets (international and online)
- Strengthening e-commerce capabilities
- Enhancing brand relevance through collaborations and partnerships
- Investing in sustainable and ethical sourcing
- Focusing on personalized customer experiences
Threats
- Intense competition from fast-fashion retailers
- Changing consumer preferences and fashion trends
- Economic downturns and reduced consumer spending
- Supply chain disruptions
- Increasing online competition
Competitors and Market Share
Key Competitors
- TJX
- AEO
- URBN
- GPS
- H&M
Competitive Landscape
The Gap, Inc. faces intense competition from fast-fashion retailers, department stores, and online retailers. Its advantages include brand recognition and a diverse portfolio, while disadvantages include declining store traffic and inconsistent brand image.
Major Acquisitions
Intermix
- Year: 2013
- Acquisition Price (USD millions): 130
- Strategic Rationale: Acquisition of Intermix was aimed at expanding Gap's presence in the luxury fashion market and appealing to a higher-end clientele. However, Intermix was later sold in 2021.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been inconsistent due to internal challenges and external market factors.
Future Projections: Future growth projections are based on analyst estimates and depend on the company's ability to execute its strategic initiatives.
Recent Initiatives: Recent initiatives include store closures, digital transformation, brand repositioning, and supply chain optimization.
Summary
The Gap, Inc. has a strong brand portfolio but faces challenges adapting to changing consumer preferences and online competition. While brand recognition remains an asset, inconsistent brand image and declining store traffic are concerns. Future success hinges on strengthening its online presence and improving brand relevance. Recent strategic initiatives aim to address these challenges but require effective execution.
Similar Companies
AEO
American Eagle Outfitters Inc
AEO
American Eagle Outfitters Inc
LEVI
Levi Strauss & Co Class A
LEVI
Levi Strauss & Co Class A
LULU
Lululemon Athletica Inc.
LULU
Lululemon Athletica Inc.
NKE
Nike Inc
NKE
Nike Inc
TGT
Target Corporation
TGT
Target Corporation
URBN
Urban Outfitters Inc
URBN
Urban Outfitters Inc
WMT
Walmart Inc
WMT
Walmart Inc
Sources and Disclaimers
Data Sources:
- Company filings (SEC)
- Financial news sources (e.g., Yahoo Finance, Bloomberg)
- Market research reports
- Analyst estimates
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Data may be subject to change. Market share and financial information are estimates based on publicly available data.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About The Gap, Inc.
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 1987-07-23 | CEO, President & Director Mr. Richard Dickson | ||
Sector Consumer Cyclical | Industry Apparel Retail | Full time employees 82000 | Website https://www.gapinc.com |
Full time employees 82000 | Website https://www.gapinc.com | ||
The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and lifestyle products for use in yoga, training, travel, and recovery activities for women and girls. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements, as well as licensing partnerships. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.
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