Modern MBA

Data

Gap

American clothing retailer, among the largest in the country, which also owns Old Navy, Banana Republic and Athleta.

8 figures on Gap, drawn from 3 Modern MBA case studies.

The figures

US dollars1

Against its own chart
Net sales by fashion brand in 2023, in billions$15B4th of 10 · top $38BWhy UNIQLO makes more money than Gucci

Percentages5

Against its own chart
Cost of product as a share of revenue, 2022, against the gross margin it leaves behind · Cost of product66%1st of 7 · top 66%How a $1,000 jacket became a luxury brand
Selling, general and administrative costs as a share of revenue, 202235%7th of 8 · top 59%How a $1,000 jacket became a luxury brand
Cost of product as a share of revenue, 2022, against the gross margin it leaves behind · Gross margin34%7th of 7 · top 76%How a $1,000 jacket became a luxury brand
Canada Goose's wholesale operating margin — its least profitable channel — against the overall margins of the mass market5%8th of 8 · top 32%How a $1,000 jacket became a luxury brand
Overall operating margin, 20225%9th of 9 · top 41%How a $1,000 jacket became a luxury brand

Counts1

Against its own chart
Annual inventory turnover by brand, 20233.33rd of 9 · top 5.1Why UNIQLO makes more money than Gucci

Durations1

Against its own chart
Duration of chief executive searches at large companies, in months12.6 mo2nd of 9 · top 13.5 moWhy Chipotle got so much worse

Case studies covering Gap

Case study — Retail & brandsWhy UNIQLO makes more money than GucciSame playbook, three outcomes. The only variable was whether the boss knew what stage he was in.16 min readCase study — Retail & brandsHow a $1,000 jacket became a luxury brandCanada Goose built a real luxury brand in ten years. The margins prove it. The share price says it may not matter.14 min readCase study — Food & beverageWhy Chipotle got so much worseA weekly staple became a byword for small portions and high prices in under ten years. Here is what broke.10 min read