GAP INCGAP

GAP INC Revenue Disclosure

10-KFiled Mar 17, 20263 min read
Revenue
We disaggregate our net sales by channel and also by brand and region. Net sales by region are allocated based on the location of the store where the customer paid for and received the merchandise; the distribution center or store from which the products were shipped; or the region of the franchise or licensing partner.
Net sales disaggregated by channel for fiscal 2025, 2024, and 2023 are as follows:
Fiscal Year
($ in millions)20252024
2023 (2)
Store and franchise sales
$9,385 $9,332 $9,346 
Online sales (1)
5,981 5,754 5,543 
Total net sales$15,366 $15,086 $14,889 
__________
(1)Online sales primarily include sales originating from our online channel including those that are picked up or shipped from stores and net sales from revenue-generating strategic initiatives.
(2)Fiscal 2023 includes incremental sales attributable to the 53rd week.
Net sales disaggregated by brand and region are as follows:
($ in millions)Old Navy GlobalGap GlobalBanana
Republic Global		Athleta Global
Other (3)
Total
Fiscal 2025
U.S. (1)$7,952 $2,679 $1,667 $1,185 $73 $13,556 
Canada648 324 173 31 — 1,176 
Other regions
57 498 76 3 — 634 
Total $8,657 $3,501 $1,916 $1,219 $73 $15,366 
($ in millions) Old Navy GlobalGap GlobalBanana
Republic Global		Athleta Global
Other (3)
Total
Fiscal 2024
U.S. (1)$7,706 $2,531 $1,682 $1,311 $65 $13,295 
Canada649 326 168 39 — 1,182 
Other regions
46 477 83 3 — 609 
Total $8,401 $3,334 $1,933 $1,353 $65 $15,086 
($ in millions) Old Navy GlobalGap GlobalBanana
Republic Global 		Athleta Global
Other (3)
Total
Fiscal 2023 (2)
U.S. (1)$7,460 $2,470 $1,681 $1,310 $46 $12,967 
Canada674 332 170 45 — 1,221 
Other regions
69 539 88 5 — 701 
Total $8,203 $3,341 $1,939 $1,360 $46 $14,889 
__________
(1)U.S. includes the United States and Puerto Rico.
(2)Fiscal 2023 includes incremental sales attributable to the 53rd week.
(3)Primarily consists of net sales from revenue-generating strategic initiatives.
We defer revenue when cash payments are received in advance of performance for unsatisfied obligations related to our gift cards, licensing agreements, outstanding loyalty points, and reimbursements of loyalty program rewards associated with our credit card agreement. For fiscal 2025, the opening balance of deferred revenue for these obligations was $273 million, of which $175 million was recognized as revenue during the period. The closing balance of deferred revenue for these obligations was $272 million as of January 31, 2026.
For fiscal 2024, the opening balance of deferred revenue for these obligations was $337 million, of which $233 million was recognized as revenue during the period. The closing balance of deferred revenue for these obligations was $273 million as of February 1, 2025.
In April 2021, the Company entered into agreements with Barclays and Mastercard relating to the Credit Card programs. The Company received an upfront payment of $60 million related to the agreements prior to the program launch in May 2022, which is being recognized as revenue over the term of the agreements. We also receive revenue sharing from our credit card agreement for private label and co-branded credit cards.

Historical Timeline

Fiscal YearFiled
2026Mar 17, 2026Showing above
2025Mar 18, 2025
2024Mar 19, 2024
2023Mar 14, 2023
2022Mar 15, 2022
2021Mar 16, 2021

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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