Gap. Inc. Annual Report Exceeds Financial Expectations

US specialty apparel company Gap Inc., with a portfolio of brands including Old Navy, Gap, Banana Republic, and Athleta, reported financial results for its fiscal year ended February 1, 2025. Net sales of $15.1 billion were up 1% compared to last year, inclusive of approximately 1 percentage point of negative impact from the loss of the fifty-third week. 

Store sales were flat year-over-year. The company ended the year with 3,569 store locations in about forty countries, of which 2,506 were company operated. Online sales increased 4 percent compared to last year and represented 38% of total net sales.

“We ended the year delivering another successful quarter, exceeding financial expectations and gaining market share for the 8th consecutive quarter,” said President and Chief Executive Officer, Richard Dickson. “For the full year 2024, Gap Inc. delivered positive comps in all four quarters, achieved one of the highest gross margins in the last 20 years and meaningfully increased operating margin versus the prior year. These strong results are underpinned by the momentum we’re seeing in our operational execution, our culture and the reinvigoration of our brands as they climb in the cultural conversation.”

At Old Navy, full year net sales of $8.4 billion were up 2% versus last year. Since Zac Posen joined Gap Inc. as EVP Creative Director and Chief Creative Officer at Old Navy, the brand is winning in key categories, like active and denim, with innovation and newness driving strength and market share gains.

Gap is executing the brand reinvigoration playbook with excellence, driving increased relevance and revenue. Full year net sales of $3.3 billion were flat versus last year. At Banana Republic, full year net sales of $1.9 billion were flat versus last year. At Athleta, there is still work to do to improve the brand’s execution in order to position it to regain momentum. Full year net sales of $1.4 billion were down 1% versus last year.

“Looking ahead, 2025 represents an exciting step in our ongoing transformation as we continue to drive toward becoming a high performing house of iconic American brands that delivers long-term value for our shareholders.”

About Gap Inc.

Founded in 1969 by Donald Fisher and Doris F. Fisher as a modest store that stocked Levi’s, today Gap Inc. is the largest specialty apparel company in America, creating products and experiences that shape culture, while doing right by employees, communities and the planet. 

Gap was founded with a simple idea—make it easier to find a pair of jeans that fit with a commitment to do more. In the fifty-odd years since, the company has grown into four brands—Old Navy, Gap, Banana Republic, and Athleta—and the initial commitment to do more has grown into a global ambition to champion equality, inclusivity, and sustainability. Per the website, “We take pride in creating products our customers love while doing right by our customers, our community, and the planet.”