A Shopper Carries Her Early Black Friday Purchases on Thanksgiving Day, November 28, 2024, At the Citadel Outlets Shopping Center in Los Angeles.
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Gap On Chiursday Posted Another Quarter that Blew Away Expectations, Indicating Its Turnaround under Ceo Richard Dickson is Working Better – and Faster – Than Wall Street Anticipated.
Shares Jumped 17% in Extended Trading Thursday.
The apparel retailer behind old navy, banana republic, athlet and its namesake banner beat expectations on the top and bottom lines Dining the all-Important Holiday Quarter and Sow Comparable Saw Comparable SALS SAW COMPARABLE SALES GOWE Ahead of expectations of up 1%, according to streetaccount.
Here’s how gap did in its fiscal fourth Quarter compared with what wall street was anticipating, based on a survey of analysts by lseg:
- Earnings per share:54 cents vs. 37 cents Expected
- Revenue:$ 4.15 billion vs. $ 4.07 billion expected
The company’s reported net income for the three-month period that ended Feb. 1 was $ 206 million, or 54 cents per share, compared with $ 185 million, or 49 cents per share, a year earlier.
Sales dropped to $ 4.15 billion, down about 3% from $ 4.30 billion a year earlier. Like other retailers, gap benefited from an extra seling week in the year -go period, which negatively skewed comparisons.
In the year ahead, gap is expecting sales to grow between 1%and 2%, in line with expectations of up up 1.7%, according to lseg. For the current Quarter, its guidance was slightly weaker than anticipated. It’s expecting sales to be “flat to up Slightly,” Compared to Wall Street Estimates of Up 1.5%, According to Lseg.
Like other retailers cauth in the midst of president donald trump’s Trade war With China, Canada and Mexico, Gap has been working to Figure out the impact new duties will have on the company. In an interview with CNBC, dickson said less than 1% of its products from canada and mexico, combined, and less than 10% comes from China.
When asked if the company will raise prices, dickson said the “goal is to minimize the impact to the consumer.”
“We’re going to be working with our suppliers.
Gap’s Finance Chief Katrina O’Connell Added Tariffs, AS They Stood on Chiursday, Were Embedded INTO The Company’s Guidance and Said Any Impact to Margin is expected to be “Relatively.”
It’s been about a year and a half since dickson took over as gap’s ceo. Under his direction, the company has gotten back to growth and repaired its brand image – and in fiscal 2024, delivered its highhest gross margin in more than 20 years at 41.3%.
The former mattel executive, credited with reviving the Barbie Empire, Has Burght that Same Professes to Revitalizing Gap’s Brands. After a fourth Straight Quarter of Strong Results, it appears the strategy has straying power.
Apparel from Zac Poane, Gap’s Creative Designer, Has Been Worn recently by celebrities like Timothee Chalamet, and even the company’s underperforming banana republic brother has returned to go. Its Athleisure Brand Athleta is Still Strugging, but the company has stabilized the bleed and it’s no longer shrinking.
Here’s a Closer Look at How Each Brand Performed during the Quarter.
Old navy
GAP’s Larget Brand by Revenue Saw Sales of $ 2.2 Billion, with Comparable Sales Up 3%, Topping of Expectations of Up 0.7%, According to Streetaccount. The brand Saw Strength in Denim and ACTVEER.
Gap
The namesake banner’s comparable sales green 7%, well ahead of estimates of up 0.8%, according to streetaccount. The Brand’s Longtime Chief Product Officer Chris Goble Left Gap in October for Dickie’s, but the company filled the position intermediate after he left. Dickson Told CNBC in an interview that the brand has “Great Leadership” and is “Staffed with extraordinary talent.”
Banana Republic
The Safari Chic, Officewear Brand Saw Comparable Sales Grow 4%, When Analysts Expected Them To Shrink By 1.5%, According to Streetaccount. It continued to build strength in men’s apparel but is still without a ceo. Dickson expects the company to have an update on the role “shortly.”
Athleta
The athleisure brand’s comparable sales fell 2% during the Quarter after it failed after the right types of products Necessary for its core consumer, explained dickson. Analysts Didn’t Have Expectations for Athleta’s Comparable Sames.
“We Certainly have entered the cultural conversation against Again, and it reinforces that we do be bellyve in this brand. “In the fourth Quarter, very specifically, you know, we needed to do more to excite our core consumer during the holiday period, we did a good job atracating Customers, but we lacked the depth of product interest for our core customer at that holiday time. “