The buyer performs his early buying of Black Friday on Thanksgiving Day, November 28, 2024, at the Citadel Outlets Shopping Center at Los Angeles.
Robyn Beck | AFP | Getty Images
Gap On Thursday, he posted another quarter that rejected expectations, indicating a turnaround under the director Richard Dickson works better – and faster – than predicted by Wall Street.
The shares jumped 17% on Thursday in extended trading.
The salesman of the clothing behind the Old Navy, the Banana Republic, Athlet and its namesake, won the expectations on the upper and lower part during all the important holiday quarter and recorded a comparative sale at 3%, on the eve of 1%expectation, according to Streeccount.
Here’s how Gap did in his fiscal fourth quarter compared to what Wall Street predicted, based on an research of LSEG analysts:
- Earnings per share: 54 cents is expected with 37 cents
- Income: Expected $ 4.15 billion in terms of $ 4.07 billion
The company reported a net revenue for a quarterly period that ended on February 1th. It was $ 206 million or 54 cents per share, compared to $ 185 million, or 49 cents per share, a year earlier.
The sale fell to $ 4.15 billion, which is a drop by about 3% with $ 4.30 billion a year earlier. Like other merchants, the GAP benefited from an extra week of sales in the period before it negatively distorted comparisons.
In the year that is the upcoming, the GAP expects the sale to grow between 1%and 2%, in accordance with the expectations of 1.7%, according to LSEG. For the current quarter of his guidelines, they were slightly weaker than it was predicted. The sale is expected to be “flat slightly increased”, compared to estimates on Wall Street in the amount of 1.5%, according to LSEG.
“We have been acting in a very dynamic background for the last few years, and we expect the same for the fiscal 2025,” said Finance Chief Gapa Katrina O’Connell at an invitation with analysts. “As a result, we took a balanced view with our guidance and others focused on control control.”
Like other traders caught in the middle of President Donald Trump trade war In addition to China, Canada and Mexico, the GAP worked to determine the impact of new duties on the company. In an interview with CNBC, Dickson said less than 1% of his product comes from Canada and Mexico, combined and less than 10% comes from China.
Asked if the company would increase prices, Dickson said that “the goal is to minimize the impact on the consumer.”
“We will work with our suppliers. We look at our costs of costs and we will need to balance it with the always protection of the structural economy of business,” Dickson said.
O’Connell added that the tariffs, as they stood on Thursday, were built into the company guidelines and said that any influence on the margin was expected to be “relatively minimal”.
It’s been around a year and a half since Dickson took over the post of executive director Gapa. Under his leadership, the company returned to growth and improved the brand image – in the fiscal 2024 she brought her largest gross margin in more than 20 years at 41.3%.
Former Mattel Executive Director, responsible for the revival of the Barbie Empire, brought the same skill to revive the Gap brands. After a fourth quarter of strong results, the strategy seems to have power.
The Zac Posena clothing, a creative Gap designer, recently wore celebrities like Timothee Chalamet, and even a company, a weaker Banana Republic brand, and has been returning to grow. His brand Atleisure Athlet is still struggling, but the company stabilized bleeding and no longer decreases.
Here’s a more close view of how each brand was performed during a quarter.
Old Navy
The biggest GAP brand on revenue recorded sales of $ 2.2 billion, with a comparable sales by 3%, at the top of 0.7%expectation, Streetaccount states. Mark saw strength in denim and active clothing.
Gap
Comparable namesake sales increased 7%, which is significantly in front of an estimate of 0.8%, according to Streetaccount.
“Gap has returned to a cultural conversation,” Dickson said on the call. “This brand was built on strong product narratives with great marketing expressed great ideas, and over the past year each of them was overwhelmed.”
Chris Goble Chris GOBLE in October, longtime head director, left Dickie’s, but the company filled the position from the inside after he left. Dickson said in an interview with CNBC that Mark had a “great guidance” and that he was “staff with extraordinary talent.”
Banana
Safari Chic, Mark’s office clothing recorded a comparative sale growing 4%, when analysts expected to decrease by 1.5%, Streetaccount said. He continued to build strength in men’s clothing, but he is still without executive director. Dickson expects the company to update the role “soon”.
In the coming year, the GAP will close the 35 stores net, most of which will be banana stores, the company announced.
Athlete
Comparable Athleisure brand sales fell by 2% during the quarter after failing to offer the right types of products needed for its basic consumer, Dickson explained. Analysts had no expectations for comparable to Athlet sales.
“We certainly got into a cultural conversation again and it strengthens that we believe in this brand. We have long -term opportunities, but we have to work to reset the brand,” Dickson said. “In the fourth quarter, very specifically, you know, we had to do more to arouse our fundamental consumer during the empty period, we attracted new consumers well.
Dickson warned that the performance of the brand was likely to remain “collective” in the quarters ahead as he continued his reset.
