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About The Gap Inc

The ubiquitous clothing retailer Gap has been filling closets with jeans and khakis, T-shirts, button-downs, and poplin for some 50 years. The company, which operates more than 3,900 owned and franchised stores worldwide, built its iconic casual brand on basics for men, women, and children. Over the years it has extended its namesake brand to include GapBody, GapKids, and babyGap (among others) and has added brands such as the urban chic Banana Republic, family budgeteer Old Navy, women's activewear chain Athleta, designer-focused Intermix, and men's clothier Hill City. The company generates more than 80% of its revenue from the US.


Gap operates in five segments: Old Navy Global, Gap Global, Banana Republic Global, Athleta, and Intermix.

Gap's Old Navy brand, a lower budget version of the Gap brand, is its biggest earner at almost 50% of total sales. The Gap brand itself brings in nearly 30%, followed by upmarket Banana Republic with more than 15%. Athleta, a line of activewear; Intermix, a designerwear brand; and Hill City, a provider of high-performance men's apparel, account for the remaining revenue.

The company owns and operates most of its store locations, its franchise stores account for around 15% of total stores.

Geographic Reach

Gap rings more than 80% of its sales in the US. Asia, including Japan and China, and Europe, including the UK, Ireland, France and Italy, are the retailer's second biggest markets each accounting for more than 5% of sales.

Gap has about 575 franchised stores across Asia, Europe, Latin America, the Middle East, and Africa.

The company has office, distribution, and warehouse space across the US (Arizona, California, Kentucky, New Mexico, New York, Ohio, and Tennessee), as well as in Canada (Ontario), China (including Hong Kong), Japan, and the UK.

Its headquarters is located in California.

Sales and Marketing

Gap communicates with consumers mainly through television and print advertising. The company has expanded its digital capabilities and the company now offers a host of omnichannel services. It spent $687 million on advertising expenses in 2019, compared to $650 million in 2018 and $673 million in 2017.

Financial Performance

Gap has seen inconsistent revenue growth over the past five years with an overall growth of 4%.

Gap's net sales for fiscal 2019 decreased $197 million, or 1%, compared with fiscal 2018. The decrease was primarily driven by negative Gap, Inc. Comp Sales and net store closures at Gap Global, partially offset by the addition of Janie and Jack, new store openings at Old Navy Global, and an increase in net sales at Athleta in part due to new stores.

Net income for fiscal 2019 was $351 million compared with $1 billion for fiscal 2018, and diluted earnings per share was $0.93 for fiscal 2019 compared with $2.59 for fiscal 2018. Diluted earnings per share for fiscal 2019 included a $1.04 net unfavorable impact due to separation-related costs, flagship impairment charges, specialty fleet restructuring costs, the above mentioned tax adjustment related to the TCJA, and a gain on the sale of a building.

Cash at the end of fiscal 2019 was $1.4 billion, down $39 million from the prior year. Cash from operations contributed $1.4 billion to the coffers, while investing activities used $894 million, mainly for property and equipment and short-term investments. Financing activities used $560 million on stock buybacks and paid dividends.


In the meantime, along with many (if not most) of its competitors, Gap is also increasingly focused on online and digital capabilities. Its online and mobile business is already showing double-digit growth with Gap promoting to customers its omni-channel services, including order-in-store, reserve-in-store, find-in-store, and ship-from-store. Through 2020 the company plans to continue investing in omni-channel services, as well as direct fulfillment capacity, personalization, and artificial intelligence, among other initiatives.

One of Gap's strategic priorities is to further develop an omni-channel shopping experience for customers through the integration of its store and digital shopping channels. The company's omni-channel initiatives include cross-channel logistics optimization and exploring additional ways to develop an omni-channel shopping experience, including further digital integration and customer personalization. These initiatives involve significant investments in IT systems and significant operational changes.

The company has key strategic initiatives designed to optimize its inventory levels and increase the efficiency and responsiveness of its supply chain, including vendor fabric platforming, product demand testing, and in-season rapid response to demand. Gap is also developing additional capabilities to analyze customer behavior and demand, which it believes will allow it to better localize assortment and improve store-level allocations, such as size allocation, to further tailor the company's assortments to customer needs and increase sell-through. Further, Gap intends to leverage technology and data science to digitize product creation, integrate with its consolidated vendor base, and further optimize its product-to-market processes and supply chain to enhance the company's in-season responsiveness and reduce its exposure to fashion volatility.

Mergers and Acquisitions

In early 2019, Gap Inc. announced it has purchased Janie and Jack, a leader in premium children's fashion, from Gymboree Group Inc. Janie and Jack operates over 100 retail stores in the US along with an e-commerce site offering apparel of outstanding quality. Janie and Jack will continue to operate as a standalone brand based in San Francisco. Gap Inc. acquired Janie and Jack for approximately $35 million. The transaction expands Gap's portfolio into the premium kids and baby business.

Company Background

Donald Fisher and his wife, Doris, opened a small store in 1969 near what is now San Francisco State University. The couple named their store The Gap (after "the generation gap") and concentrated on selling Levi's jeans. The couple opened a second store in San Jose, California, eight months later, and by the end of 1970 there were six Gap stores. The Gap went public six years later. 

In 1983 The Gap bought Banana Republic, a unique chain of jungle-themed stores that sold safari clothing. It launched Old Navy Clothing Co. in 1994.

In October 2008 Gap acquired Athleta, a direct-marketer of women's active wear; it purchased designer-focused Intermix four years later. Hill City, a high-performance men's apparel brand was launched by Gap in 2018. 

In 2019 the company announced plans to separate its fast-growing Old Navy into its own company.

The Gap Inc

2 Folsom St
San Francisco, CA 94105-1205
Phone: 1 (415) 427-0100

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: GPS
Stock Exchange: , NYSE
Chairman: Robert J. Fisher
EVP and CFO: Teri L. List-Stoll
CEO: Arthur Peck
Employees (This Location): 2,500
Employees (All Locations): 129,000

Major Office Locations

San Francisco, CA

Other Locations

Anchorage, AK
Fairbanks, AK
Alabaster, AL
Decatur, AL
Dothan, AL
Foley, AL
Gadsden, AL
Hoover, AL
Huntsville, AL
Leeds, AL
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Funabashi, Japan
Gamou-Gun, Japan
Gotemba, Japan
Hachioji, Japan
Hamamatsu, Japan
Higashi Kurume, Japan
Hirakata, Japan
Hiratsuka, Japan
Hiroshima, Japan
Hofu, Japan
Ibaraki, Japan
Ichinomiya, Japan
Imba-Gun, Japan
Inashiki-Gun, Japan
Inazawa, Japan
Inzai, Japan
Itami, Japan
Iyo-Gun, Japan
Izumi, Japan
Izumisano, Japan
Kasai, Japan
Kashihara, Japan
Kashiwa, Japan
Kasuya-Gun, Japan
Kawagoe, Japan
Kawaguchi, Japan
Kawasaki, Japan
Kisarazu, Japan
Kitahiroshima, Japan
Kitakyushu, Japan
Kita Saku-Gun, Japan
Kobe, Japan
Kokubunji, Japan
Koshigaya, Japan
Koto-Ku, Japan
Kuki, Japan
Kumamoto, Japan
Kurashiki, Japan
Kuse-Gun, Japan
Kuwana, Japan
Kyoto, Japan
Machida, Japan
Maebashi, Japan
Marugame, Japan
Minato-Ku, Japan
Mito, Japan
Miyakonojo, Japan
Miyazaki, Japan
Morioka, Japan
Moriyama, Japan
Musashimurayama, Japan
Musashino, Japan
Nagasaki, Japan
Nagoya, Japan
Nakagami-Gun, Japan
Nakakoma-Gun, Japan
Nasushiobara, Japan
Niigata, Japan
Nishinomiya, Japan
Odawara, Japan
Oita, Japan
Okayama, Japan
Osaka, Japan
Ota, Japan
Oyabe, Japan
Oyama, Japan
Sagamihara, Japan
Saitama, Japan
Sakai, Japan
Sano, Japan
Sapporo, Japan
Sendai, Japan
Setagaya-Ku, Japan
Shibuya-Ku, Japan
Shimajiri-Gun, Japan
Shinjuku-Ku, Japan
Shizuoka, Japan
Soka, Japan
Sumida-Ku, Japan
Tachikawa, Japan
Taito-Ku, Japan
Takamatsu, Japan
Takasaki, Japan
Toki, Japan
Tomigusuku, Japan
Toshima-Ku, Japan
Tosu, Japan
Toyonaka, Japan
Tsukuba, Japan
Urayasu, Japan
Utsunomiya, Japan
Yachiyo, Japan
Yokohama, Japan
Cardiff, Wales
Newport, Wales
Swansea, Wales
Abbotsford, Canada
Ajax, Canada
Banff, Canada
Barrie, Canada
Belleville, Canada
Bolton, Canada
Brampton, Canada
Brossard, Canada
Burlington, Canada
Burnaby, Canada
Caledon, Canada
Calgary, Canada
Cambridge, Canada
Charlottetown, Canada
Concord, Canada
Cookstown, Canada
Coquitlam, Canada
Côte Saint-Luc, Canada
Dartmouth, Canada
Dieppe, Canada
Edmonton, Canada
Etobicoke, Canada
Fredericton, Canada
Georgetown, Canada
Guelph, Canada
Halifax, Canada
Halton Hills, Canada
Hamilton, Canada
Kelowna, Canada
Kingston, Canada
Kitchener, Canada
Langley, Canada
Lasalle, Canada
Lethbridge, Canada
London, Canada
Markham, Canada
Mirabel, Canada
Mississauga, Canada
Moncton, Canada
Montréal, Canada
Mont-Royal, Canada
Nanaimo, Canada
Nepean, Canada
Newmarket, Canada
New Westminster, Canada
Niagara On The Lake, Canada
North Bay, Canada
North York, Canada
Oshawa, Canada
Ottawa, Canada
Peterborough, Canada
Pointe-Claire, Canada
Prince George, Canada
Québec, Canada
Red Deer, Canada
Regina, Canada
Richmond, Canada
Richmond Hill, Canada
Rocky View County, Canada
Saint-Bruno, Canada
Saint John, Canada
Saskatoon, Canada
Scarborough, Canada
Sherwood Park, Canada
St Catharines, Canada
St. John'S, Canada
Sudbury, Canada
Surrey, Canada
Thornhill, Canada
Thunder Bay, Canada
Toronto, Canada
Vancouver, Canada
Vaudreuil-Dorion, Canada
Victoria, Canada
Waterloo, Canada
West Vancouver, Canada
Whistler, Canada
Windsor, Canada
Winnipeg, Canada
Aix En Provence, France
Beaucouze, France
Boulogne Billancourt, France
Creteil, France
Dijon, France
Lille, France
Lyon, France
Montpellier, France
Nancy, France
Paris, France
Puteaux, France
Sainte Genevieve Des Bois, France
Serris, France
Strasbourg, France
Velizy Villacoublay, France
Ashford, England
Banbury, England
Basingstoke, England
Bath, England
Birmingham, England
Boldon Colliery, England
Braintree, England
Brierley Hill, England
Brighton, England
Bristol, England
Bromley, England
Cambridge, England
Canterbury, England
Carlisle, England
Cheltenham, England
Chester, England
Colchester, England
Coventry, England
Derby, England
Ellesmere Port, England
Exeter, England
Grays, England
Greenhithe, England
Guildford, England
Harrogate, England
Heckmondwike, England
Hemel Hempstead, England
Hull, England
Ipswich, England
Kingston Upon Thames, England
Leamington Spa, England
Leeds, England
Leicester, England
Liverpool, England
London, England
Manchester, England
Milton Keynes, England
Nottingham, England
Oxford, England
Peterborough, England
Portsmouth, England
Preston, England
Reading, England
Richmond, England
Romford, England
Salford, England
Sevenoaks, England
Sheffield, England
Solihull, England
Southampton, England
Southend-On-Sea, England
Stockport, England
Sutton Coldfield, England
Swindon, England
Telford, England
Tunbridge Wells, England
Windsor, England
Wolverhampton, England
York, England
Dundee, Scotland
Edinburgh, Scotland
Glasgow, Scotland
Inverkeithing, Scotland
Inverness, Scotland
Livingston, Scotland
Perth, Scotland
Stirling, Scotland