The Gap, Inc.

GPS: Is The Gap, Inc. Halal?

The Gap, Inc.

NYSEConsumer CyclicalUS

$24.55

+4.38%

Market Cap: 9.2B

Compliance Status

Not Halal

Screened on Aug 27, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is The Gap, Inc. (GPS) halal? Not Halal. Based on AAOIFI screening, The Gap, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

60.9% of 30.0% limit

What this means for you

Most scholars advise not holding GPS

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About The Gap, Inc.

The Gap, Inc. functions as a prominent global apparel and accessories retailer. The company provides a diverse array of clothing, accessories, and personal care products tailored for men, women, and children, primarily under its renowned brands: Old Navy, Gap, Banana Republic, and Athleta. Its extensive product range encompasses essential items like denim, t-shirts, fleece wear, and khakis, along with accessories such as eyewear, jewelry, footwear, handbags, and fragrances. Athleta specifically focuses on women and girls, offering fitness and lifestyle products suitable for activities from yoga and sports to travel and everyday use. The company engages with its customer base through a multifaceted distribution network, which includes its own company-operated retail stores, independently owned franchise locations, various digital e-commerce platforms, collaborations with third-party vendors, and traditional catalog sales. To expand its international presence, The Gap, Inc. has forged franchise agreements, empowering unaffiliated partners to manage Old Navy, Gap, Athleta, and Banana Republic stores and online platforms throughout Asia, Europe, Latin America, the Middle East, and Africa. As of December 31, 2021, the company's physical retail footprint consisted of 2,835 company-owned stores and an additional 564 franchised outlets. Established in 1969, The Gap, Inc. maintains its corporate headquarters in San Francisco, California.

Sector: Consumer Cyclical · Industry: Apparel - Retail

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 27, 2026

Compliance History

Not Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Fiscal: FY 2026Data source: FMP
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Frequently Asked Questions

Is The Gap, Inc. (GPS) halal to invest in?
The Gap, Inc. (GPS) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did The Gap, Inc. get a F compliance rating?
The Gap, Inc. (GPS) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 60.9% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change The Gap, Inc.'s Shariah verdict?
The Gap, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is The Gap, Inc. re-screened for Shariah compliance?
The Gap, Inc. (GPS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 27, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.