Gap, Inc. (The) (GAP) concentration risks

The company's disclosed concentration is geographic on the sourcing side. Approximately 27 percent of fiscal 2025 purchases by dollar value came from factories in Vietnam — a moderate share by disclosed size — and approximately 21 percent came from factories in Indonesia, a small share by disclosed size. Both are structural in character: they reflect the natural clustering of apparel manufacturing capacity in Southeast Asia rather than a reliance on any single vendor or counterparty that could be unilaterally withdrawn. Together, these two countries account for a combined majority of disclosed sourcing that the filing singles out, which means tariff policy, labor cost dynamics, regulatory changes, and logistics disruptions in Vietnam or Indonesia are the primary channels through which this exposure could affect input costs and product availability. The Vietnam share warrants particular attention given its prominence. No customer concentration, no product-line skew, and no supplier single-source dependency are disclosed alongside these geographic sourcing exposures. On balance, the concentration profile is supply-chain geographic in nature and well understood within the context of global apparel sourcing, with the primary watch variables being trade policy developments and manufacturing capacity conditions in Southeast Asia.

For the engine’s reasoning on GAP’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.