Gap, Inc - SWOT
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The Gap, Inc. SWOT Analysis
Strengths
Strong Liquidity Position
During the 2010 fiscal year, The Gap, Inc. saw an increase in cash inflow from operating activities of 36.4%, according to GlobalData. Increasing cash and cash equivalent represents the company’s ability to fund its business opportunities, working capital needs, meet shortterm obligations and other capital requirements in the future. GAP is superior competitors. According to DataMonitor, 2011, the company’s net profit margin (8.2%) for FY2011 was nearly double when compared to the net profit margins of AnnTaylor Stores (3.7%) and American Eagle
Outfitters (4.7%), two of its competitors (GlobalData).
On February 23, 2012, Gap, Inc. reported an increase in earnings per share, after it bought back
111 million shares in 2001 for a total of $2.1 billion. The purchase of stocks led to an annual increase of close to 50 cents per share. Although the increase in price per share is down from the same quarter in 2010, According to Forbes, that figure still exceeded Zacks Consensus
Estimate by two cents. Despite net sales being down two percent in same comparison, those sales are still in line with Zacks Consensus Estimate. According to Forbes, the decrease was due to a four percent decline in samestore sales. Gap, Inc. also reported a thirtyseven percent drop in operating income is merely a reflection of their recent decline in operating expenses
(Forbes).
Strong portfolio / brand recognition
Gap, Inc. provides a wide range of apparel for men, women, and children of all age groups.
Gap’s brand name is most important asset Gap, Old Navy, GapKids, BabyGap, Gapbody,
GapMaternity, Intermix, Banana Republic, Athleta, and Piperlime Gap, Inc.).
Supplier power
Key suppliers in the apparel market are clothing manufacturers and wholesalers, with retailers able to source from both. Gap, Inc. acts as both a manufacturer and a retailer by using privatelabels which provide a manufacturer
The Gap, Inc. SWOT Analysis
Strengths
Strong Liquidity Position
During the 2010 fiscal year, The Gap, Inc. saw an increase in cash inflow from operating activities of 36.4%, according to GlobalData. Increasing cash and cash equivalent represents the company’s ability to fund its business opportunities, working capital needs, meet shortterm obligations and other capital requirements in the future. GAP is superior competitors. According to DataMonitor, 2011, the company’s net profit margin (8.2%) for FY2011 was nearly double when compared to the net profit margins of AnnTaylor Stores (3.7%) and American Eagle
Outfitters (4.7%), two of its competitors (GlobalData).
On February 23, 2012, Gap, Inc. reported an increase in earnings per share, after it bought back
111 million shares in 2001 for a total of $2.1 billion. The purchase of stocks led to an annual increase of close to 50 cents per share. Although the increase in price per share is down from the same quarter in 2010, According to Forbes, that figure still exceeded Zacks Consensus
Estimate by two cents. Despite net sales being down two percent in same comparison, those sales are still in line with Zacks Consensus Estimate. According to Forbes, the decrease was due to a four percent decline in samestore sales. Gap, Inc. also reported a thirtyseven percent drop in operating income is merely a reflection of their recent decline in operating expenses
(Forbes).
Strong portfolio / brand recognition
Gap, Inc. provides a wide range of apparel for men, women, and children of all age groups.
Gap’s brand name is most important asset Gap, Old Navy, GapKids, BabyGap, Gapbody,
GapMaternity, Intermix, Banana Republic, Athleta, and Piperlime Gap, Inc.).
Supplier power
Key suppliers in the apparel market are clothing manufacturers and wholesalers, with retailers able to source from both. Gap, Inc. acts as both a manufacturer and a retailer by using privatelabels which provide a manufacturer
Cited: MarketLine. Global Apparel Accessories & Luxury Goods. London, 2012 May 2012. Electronic.