Inventory Turnover › By Retailer › Gap Inc.
Gap Inc. Inventory Turnover: The Two-Year Reset
Gap Inc. (GAP), owner of Old Navy, Gap, Banana Republic and Athleta, turned its inventory 4.3x in fiscal 2025 (52 weeks ended January 31, 2026), about 86 days on hand. That is up from 3.8x in fiscal 2022, after the company cut its inventory by about a third over two years. All figures are from the company's 10-K filings on SEC EDGAR.
Quick answer: Gap Inc.'s fiscal 2025 and 2024 10-K inventory turnover ratio
Fiscal 2025 (10-K)
4.3x for the 52 weeks ended January 31, 2026. $9,098M cost of goods sold and occupancy over $2,137M average inventory ($2,067M opening, $2,207M closing). About 86 days on hand.
Fiscal 2024 (10-K)
4.4x for the 52 weeks ended February 1, 2025. $8,859M cost of goods sold and occupancy over $2,031M average inventory. About 84 days on hand.
Turnover = cost of goods sold and occupancy expenses / average inventory (mean of opening and closing balance-sheet merchandise inventory). Figures from Gap Inc.'s 10-K filings on SEC EDGAR (CIK 0000039911), verified 10 November 2026.
Fiscal 2022 - fiscal 2025 turnover history
| Fiscal Year | Cost of Sales | Inv (start) | Inv (end) | Turnover | Days on Hand |
|---|---|---|---|---|---|
| Fiscal 2022 (ended Jan 28, 2023) | $10,257M | $3,018M | $2,389M | 3.8x | 96 |
| Fiscal 2023 (ended Feb 3, 2024) | $9,114M | $2,389M | $1,995M | 4.2x | 88 |
| Fiscal 2024 (ended Feb 1, 2025) | $8,859M | $1,995M | $2,067M | 4.4x | 84 |
| Fiscal 2025 (ended Jan 31, 2026) | $9,098M | $2,067M | $2,207M | 4.3x | 86 |
Inventory (start) equals the prior year's inventory (end). Gap names each fiscal year after the calendar year in which most of it falls. Fiscal 2023 was a 53-week year, which lifts that year's cost of goods sold slightly.
3.8x · The low point of the window. The year opened with $3.0B of inventory, the highest balance in the series, and Gap cut it by 21% by year end.
4.2x · A second year of reduction took inventory down another 17% to under $2.0B. Cost of goods sold fell too, but inventory fell faster, so turnover rose.
4.4x · The best year in the window. Inventory rose only 4% from its low base, holding turnover at 4.4x.
4.3x · Net sales rose 2% to $15.4B, driven by online. Year-end inventory rose 7%, faster than sales, easing turnover slightly.
Cutting a third of the inventory, then holding the line
Gap opened fiscal 2022 carrying $3.0B of merchandise inventory, the largest balance in this four-year series. Over the next two years it brought that down to just under $2.0B. Cost of goods sold and occupancy fell too, from $10.3B to $9.1B, but inventory fell much faster, so turnover climbed from 3.8x to 4.4x and days on hand dropped from 96 to 84.
The harder part is holding the gain once sales return to growth. In fiscal 2025 net sales rose 2%, mainly online, while year-end inventory rose 7%. Turnover eased only slightly, to 4.3x, but inventory growing faster than sales is the pattern that built the fiscal 2022 overhang, so it is the number to watch in the next filing.
Gap's 10-K is explicit about how it handles stock that does not sell. It reviews inventory for slow-moving merchandise and broken assortments (items no longer in stock in enough sizes or colours) and primarily uses markdowns to clear them. A full-price apparel retailer carries complete size and colour runs to sell at full price, and the leftovers go through markdowns. That model holds more inventory per dollar of sales than an off-price chain, which is why Gap sits in the 4x range rather than the 6x range.
What sets Gap's turnover
1. Four brands, four inventory profiles
Old Navy and Gap are the two largest brands and drove the fiscal 2025 sales gain; Athleta's comparable sales fell 9%. A brand whose sales slow while its buys were planned for growth carries extra stock, so the group ratio blends a value brand, a core brand, a premium brand and an athleisure brand that each turn differently.
2. Full size and colour ranges
A full-price apparel store needs every size of a style on the shelf for it to sell. When a size runs out the rest becomes a broken assortment, which Gap's 10-K says it clears mainly with markdowns. The ranges themselves hold inventory that an off-price chain does not carry.
3. A smaller store base
Gap ended fiscal 2025 with 2,474 company-operated stores, 32 fewer than a year earlier, including a net 22 fewer Banana Republic stores in North America. Franchise partners run about 1,000 more stores in Asia, Europe, Latin America, the Middle East and Africa. Fewer company stores means less inventory spread across shelves.
4. Occupancy in the numerator
Gap reports one line, cost of goods sold and occupancy expenses, equal to 59.2% of net sales in fiscal 2025. Including occupancy raises the numerator, so the ratio runs higher than a merchandise-only measure. TJX and Ross also include occupancy; Macy's does not.
Where 4.3x sits among retailers
Latest 10-K inventory turnover, times per year
Each figure is cost of sales over average inventory from the company's latest 10-K. Every retailer here has its own case study; the full ranked list is on the inventory turnover by retailer page.
Among apparel retailers Gap sits in the middle. The off-price chains, Ross at 6.5x and TJX at 6.1x, turn faster by buying other brands' excess stock close to need. Lululemon (3.1x) and Macy's (3.0x) turn slower: Lululemon as a premium brand whose year-end inventory rose 18% in fiscal 2025, Macy's because it is a department store with a broad assortment and keeps occupancy out of its cost of sales.
Against the whole retail ladder, Gap is close to Dollar General and Home Depot (both 4.5x) and well below the grocery-led formats. For the sector range see the apparel turnover benchmarks.
Frequently asked questions
What is Gap Inc.'s inventory turnover ratio?
Gap Inc. turned its inventory 4.3x in fiscal 2025, the 52 weeks ended January 31, 2026. That is $9,098M of cost of goods sold and occupancy expenses divided by $2,137M average merchandise inventory (the mean of the $2,067M opening and $2,207M closing balances) from its 10-K. It works out to about 86 days of inventory on hand.
Why did Gap's inventory turnover improve after fiscal 2022?
Gap shrank its inventory much faster than its cost of goods sold fell. Merchandise inventory went from $3,018M at the start of fiscal 2022 to $1,995M at the end of fiscal 2023, a cut of about a third, while annual cost of goods sold and occupancy fell from $10,257M in fiscal 2022 to $9,114M in fiscal 2023. Turnover rose from 3.8x to 4.4x as a result. Gap's 10-K describes the period as two years focused on fixing the fundamentals.
How is Gap's inventory turnover calculated from the 10-K?
Divide cost of goods sold and occupancy expenses by average inventory, the mean of the opening and closing merchandise-inventory balances on the balance sheet. Gap reports occupancy costs inside the same line as product costs, so its ratio runs somewhat higher than a pure merchandise-cost measure. For fiscal 2025: $9,098M / (($2,067M + $2,207M) / 2) = 4.3x.
How does Gap compare with Lululemon and the off-price chains?
Gap's 4.3x sits between the premium and off-price ends of apparel. Lululemon turned about 3.1x in its fiscal 2025, a premium brand holding more stock per dollar of sales. Ross (6.5x) and TJX (6.1x) turn faster because they buy merchandise close to need, often other brands' overruns, and do not carry full size and colour ranges. Gap carries full ranges across four brands and clears what does not sell with markdowns.