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The Gap, Inc. (GPS) Operating Margin: 7.26%

Is The Gap, Inc.’s operating margin high or low?

The Gap, Inc.'s operating margin of 7.26% is 56% above its 5-year average of 4.65%, near the high end of its 5-year range (-0.44%–7.37%).

The operating margin for The Gap, Inc. (GPS) is 7.26% as of Tuesday, June 9, 2026. It is below its 12-month average by 0.75% (7.31%).

GPS Operating Margin Chart

GPS Operating Margin
7.26%-1.49% 1Y
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GPS Average Operating Margin Chart

GPS Current vs Average Operating Margin Chart

GPS Operating Margin Metrics

OPERATING MARGIN

7.26%

OPERATING MARGIN AVG TTM

7.31%

OPERATING MARGIN AVG 3Y

6.27%

OPERATING MARGIN AVG 5Y

4.65%

OPERATING MARGIN AVG 10Y

4.57%

OPERATING MARGIN AVG 15Y

6.91%

OPERATING MARGIN AVG 20Y

7.82%

CURRENT VS TTM AVG

-0.75%

CURRENT VS 3Y AVG

+15.79%

CURRENT VS 5Y AVG

+56.26%

CURRENT VS 10Y AVG

+58.86%

CURRENT VS 15Y AVG

+5.10%

CURRENT VS 20Y AVG

-7.14%

GPS Competitors' Operating Margin

NAMEMARKET CAPOPERATING MARGINTTM3Y5Y
The Gap, Inc. (GPS)7.26%7.31%6.27%4.65%
Wayfair Inc. (W)$9.42B0.14%-1.88%-5.46%-3.33%
CAVA Group, Inc. (CAVA)$8.88B6.73%5.60%0.32%-1.86%
Chewy, Inc. (CHWY)$8.45B2.02%1.48%0.92%0.50%
GameStop Corp. (GME)$10.00B7.88%3.59%0.32%-1.59%
Domino's Pizza, Inc. (DPZ)$10.57B19.31%18.99%18.30%18.13%
The Gap, Inc. (GAP)$7.80B7.26%7.31%4.49%2.76%
Etsy, Inc. (ETSY)$6.53B12.76%13.15%2.70%9.23%
NIO Inc. (NIO)$12.45B-16.89%-25.09%-30.66%-27.24%
DraftKings Inc. (DKNG)$13.69B-0.26%-6.51%-25.51%-59.96%

Operating Efficiency

Gross Margin

40.8%

Operating Margin

7.3%

The Gap, Inc. Operating Margin Formula & Definition

Operating Margin = Operating Income / Revenue

Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

The Gap, Inc. Operating Margin FAQ

What is the operating margin for The Gap, Inc. (GPS)?
The operating margin for GPS stock is 7.26%.
Is The Gap, Inc.'s operating margin high or low?
The Gap, Inc.'s operating margin of 7.26% is 56% above its 5-year average of 4.65%, near the high end of its 5-year range (-0.44%–7.37%).
What is the TTM average operating margin for The Gap, Inc. (GPS)?
The TTM average operating margin for GPS stock is 7.31%.
What is the 3Y average operating margin for The Gap, Inc. (GPS)?
The 3Y average operating margin for GPS stock is 6.27%.
What is the 5Y average operating margin for The Gap, Inc. (GPS)?
The 5Y average operating margin for GPS stock is 4.65%.
What is the 10Y average operating margin for The Gap, Inc. (GPS)?
The 10Y average operating margin for GPS stock is 4.57%.
What is the 15Y average operating margin for The Gap, Inc. (GPS)?
The 15Y average operating margin for GPS stock is 6.91%.
What is the 20Y average operating margin for The Gap, Inc. (GPS)?
The 20Y average operating margin for GPS stock is 7.82%.

The Gap, Inc. Operating Margin History

DATEOPERATING MARGIN
2026-01-317.26%
2025-02-017.37%
2024-02-034.18%
2023-01-28-0.44%
2022-01-294.86%
2021-01-30-6.25%
2020-02-013.50%
2019-02-028.21%
2018-02-039.33%
2017-01-287.68%
2016-01-309.65%
2015-01-3112.67%
2014-02-0113.31%
2013-02-0212.41%
2012-01-289.88%
2011-01-2913.42%
2010-01-3012.78%
2009-01-3110.66%
2008-02-028.34%
2007-02-037.55%
2006-01-2811.08%
2005-01-2912.82%
2004-01-3111.85%
2003-02-017.00%
2002-02-022.44%
2001-02-0310.57%
2000-01-2915.61%
1999-01-3014.72%
1998-01-3113.08%
1997-02-0113.80%

About The Gap, Inc.

The Gap, Inc. functions as a prominent global apparel and accessories retailer. The company provides a diverse array of clothing, accessories, and personal care products tailored for men, women, and children, primarily under its renowned brands: Old Navy, Gap, Banana Republic, and Athleta. Its extensive product range encompasses essential items like denim, t-shirts, fleece wear, and khakis, along with accessories such as eyewear, jewelry, footwear, handbags, and fragrances. Athleta specifically focuses on women and girls, offering fitness and lifestyle products suitable for activities from yoga and sports to travel and everyday use. The company engages with its customer base through a multifaceted distribution network, which includes its own company-operated retail stores, independently owned franchise locations, various digital e-commerce platforms, collaborations with third-party vendors, and traditional catalog sales. To expand its international presence, The Gap, Inc. has forged franchise agreements, empowering unaffiliated partners to manage Old Navy, Gap, Athleta, and Banana Republic stores and online platforms throughout Asia, Europe, Latin America, the Middle East, and Africa. As of December 31, 2021, the company's physical retail footprint consisted of 2,835 company-owned stores and an additional 564 franchised outlets. Established in 1969, The Gap, Inc. maintains its corporate headquarters in San Francisco, California.

San Francisco, CA
85,000 employees
Consumer Cyclical / Apparel - Retail
Sector
Consumer Cyclical
Industry
Apparel - Retail
CEO
Richard Dickson