The company posted a gross margin of 38.1 per cent, declined 80 basis points versus last year. In the fourth quarter, merchandise margin declined 90 basis points versus last year primarily due to an estimated net tariff impact of approximately 200 basis points. Average unit retail grew as a result of lower discounting. Rent, occupancy, and depreciation (ROD) as a percent of sales leveraged 10 basis points as compared to last year, the company said in a press release.
Gap Inc. reported Q4 FY25 net sales of $4.2 billion, up 2 per cent YoY, with comparable sales rising 3 per cent and online sales up by 5 per cent (42 per cent of revenue).
Gross margin fell to 38.1 per cent due mainly to tariff impacts.
For fiscal 2025, sales reached $15.4 billion, online sales were 39 per cent of total, and gross margin was 40.8 per cent.
“I am pleased to report that Gap delivered a successful fourth quarter, marking another year of meaningful progress,” said president and chief executive officer, Richard Dickson. “The execution of our playbook is driving consistent results, as we achieved our second consecutive year of topline growth and eighth consecutive quarter of positive comparable sales. Financial and operational rigour combined with the strength of our platform drove one of our highest gross margins in the last 25 years and further strengthened our balance sheet.”
For fiscal year 2025, the company reported net sales of $15.4 billion, up 2 per cent compared to the previous year. Store sales increased by 1 per cent year-on-year. By the end of the year, the company operated nearly 3,500 store locations across about 35 countries, of which 2,474 were company-operated. Online sales rose by 4 per cent year-on-year and represented 39 per cent of total net sales.
For 2025, the company posted a gross margin of 40.8 per cent, declined 50 basis points versus last year. Merchandise margin declined 80 basis points versus last year primarily due to an estimated net tariff impact of approximately 120 basis points. Rent, occupancy, and depreciation (ROD) as a percent of sales leveraged 30 basis points versus last year.
“As we move into the next phase of our transformation we remain focused on growing our core apparel business through continuous improvement while thoughtfully seeding growth accelerators that will scale over time. Our aspirations remain high and our teams are energised as we continue to drive toward becoming a high performing house of iconic American brands that delivers long-term value for our shareholders,” Dickson continued.
Fibre2Fashion News Desk (RR)
