The GapInternet research assignment


Ram T. S. Ramakrishnan

 

Most of the information about GAP Inc. is in  http://www.gapinc.com/

For the annual report click.

 1. What was the gross margin for Gap Inc. in  52 Weeks Ended Jan. 29, 2000, Jan. 30, 1999 and Jan. 31, 1998 ?  What are the main reasons for the changes?

2. What was the inventory turnover ratio Gap Inc. in  52 Weeks Ended Jan. 29, 2000 ?

Check out QUARTERLY FINANCIAL INFORMATION section

3.  Is there any seasonal pattern to the sales in Gap Inc. ?  What fraction of the sales occurs in the fourth quarter?

4.  Assume that interest expenses for Gap Inc. in  52 Weeks Ended Jan. 29, 2000 was uniform (equal) across all four quarters of the fiscal year.  By using the data only from 13 Weeks Ended May 1, 1999 and 13 Weeks Ended Jan. 29, 2000, compute the fixed part of cost of goods sold and occupancy expenses and variable cost percentage of cost of goods sold and occupancy expenses.  Compute also the fixed operating expenses and variable cost percentage of operating expenses.

5. Read the accompanying article

Clicks and Mortar' at Gap.com
The clothing chain's stores and Web site work together to push up sales at both

Do you see any problems in organizing each store and Gap.com as separate a profit centers in creating incentives for the store mangers ?