The Fiscal year Ended January 28, 2012
A. INTRODUCTION AND OVERVIEW 1. Financial Statements Included in the Annual Report
2.1. Consolidated Statements of Cash Flow 2. Major Competitors of the GAP, Inc.
American Eagle Outfitters, Inc., J. Crew Group, Inc., and the TJX Companies, Inc. can be shown as the major competitors for the GAP, Inc. Based on the data given in annual reports of the companies, gross margin % for GAP, Inc. is 36%, while American Eagle Outfitters has 36%, J. Grew Group, Inc. has 40%, and TJX has 32% gross margin. Stock price on November 2, 2012 is $35.11 for the GAP, Inc., while it is $21.05 for American Eagle Outfitters, Inc., $43.55 for J. Crew Group, Inc., and $41.52 for the TJX Companies, Inc.
Debt-to-equity ratio is the total debt divided by total shareholder’s equity and this ratio is a measure of company solvency and its ability to meet its short- and long term obligations. For the major competitors of the GAP, Inc. this ratio calculated as below:
3. Auditing Firm of the GAP, Inc.
Deloitte & Touche LLP have audited the accompanying consolidated balance sheets of the GAP, Inc. and the other financial statements which are the consolidated statements of income, stockholder’s equity, and cash flows for three years in the period ended in January 28, 2012. They have also consulted the Company’s internal control over financial reporting as of January 28, 2012.
Deloitte & Touche LLP indicated that consolidated financial statements, which are given in the annual report, present fairly the financial position of The GAP, Inc. and subsidiaries as of January 28, 2012 in conformity with accounting principles generally accepted in the United States of America. Also, in their opinion, the company maintained effective internal control over financial reporting as of 28 January, 2012 based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring