Kupper takes his shopping into the top Black Friday on thanksgiving, November 28, 2024, at the Citadel Outlets shopping center in Los Angeles.
Robyn Beck AFP Getty images
Gap On Thursday, he published another quarter, which surprised the expectations, indicating that his return under the command of general director Richard Dickson works better – and faster – than Wall Street expected.
Actions jumped 17% in extended trade on Thursday.
According to Streetaccount, a clothing seller standing behind the navy Old, Banana Republic, Athleta and her namesake banner overcame the highest level of expectations in the most important holiday quarter and recorded sales increase by 3%, ahead of 1%of the waiting by 1%.
Here's how Gapa in the fourth tax quarter compared to what Wall Street provided, based on an analysts survey conducted by LSEG:
- Profit per share: 54 cents vs. 37 expected cents
- Income: Expected $ 4.15 billion vs. $ 4.07 billion
The company reported net income over three months, which ended on February 1, amounted to USD 206 million, or 54 cents per share, compared to USD 185 million, i.e. 49 cents per share, a year earlier.
Sales dropped to $ 4.15 billion, which is about 3% of $ 4.30 billion a year earlier. Like other retailers, GAP took advantage of the additional sales week during the last year, which negatively distorted comparisons.
According to LSEG in the coming year, GAP expects an increase from 1%to 2%, as expected by 1.7%. In the current quarter, his tips were slightly weaker than expected. According to LSEG, he expects sales “slightly increased” compared to Wall Street estimates by 1.5%.
“We have been operating in a very dynamic background for the last few years and we expect the same in the case of fiscal 2025.” – said Katrina O'Connell, head of finance GAP with analysts. “As a result, we balanced our tips and focused on controlling control.”
Like other retailers, caught during President Donald Trump Trade war In China, Canada and Mexico, GAP is working on inventing the influence that new duties will have on the company. In an interview with CNBC, Dickson said that less than 1% of its product comes from Canada and Mexico, in total, and less than 10% comes from China.
Asked if the company would raise prices, Dickson said that “the goal is to minimize the impact on the consumer.”
“We will cooperate with our suppliers. We look at our cost base and we will have to balance it, always protecting the company's structural economy, “said Dickson.
O'Connell added tariffs because they stood on Thursday, they were embedded in the company's guidelines and stated that any impact on the margin is to be “relatively minimal”.
It has been around a year and a half since Dickson took the position of GAP General Director. Under his direction, the company returned to height and repaired the brand image – and in the tax year 2024 provided the highest gross margin over 20 years at 41.3%.
Former director of Mattel, assigned to the revival of the Barbie Empire, brought the same efficiency for the revitalization of Marek GAP. After the fourth in a row of strong results, it seems that the strategy remains power.
Clothing from Zac Posen, a creative designer of GAP, has recently been worn by celebrities such as Timothee Chalamet, and even the weaker brand of Banana Republic Republic has returned to development. Athleta her brand Athleisure is still fighting, but the company stabilized bleeding and no longer shrinks.
Here is a closer look at how every brand worked during the quarter.
Old Navy
According to Streetaccount, the largest GAP brand according to revenues of $ 2.2 billion, with comparable sales by 3%, which is an increase in expectations by 0.7%. The brand saw strength in jeans and active clothing.
Gap
According to Streetaccount, comparable sales of namesake banners increased by 7%, significantly ahead of the estimates by 0.8%.
“Gap returned to a cultural conversation,” Dickson said about the conversation. “This brand was based on strong narratives of products with brilliant marketing expressed by large ideas, and in the last year each of them was known again.”
The longtime product director of the Chris Goble brand left the gap in October for Dickie's, but the company filled this position internally after his departure. Dickson said CNBC in an interview that the brand has “great leadership” and “casting extraordinary talents.”
Banana Republic
According to Streetaccount, Safari Chic, the Officewear brand increased by 4%when the analysts expected to fall by 1.5%. He still built strength in men's clothing, but he still has no general director. Dickson expects the company to update the role “soon”.
In the coming year, GAP will close 35 stores on a net basis, most of which will be banana stores, said the company.
Athlet
Comparable sales of the Athleisure brand fell by 2% in this quarter after it did not offer the appropriate types of products necessary for its main consumer, explained Dickson. Analysts did not expect the comparable sales of Athleta.
“We certainly entered the cultural conversation again and strengthens the fact that we believe in this brand. We have long-term possibilities, but we have a job to reset the brand, “said Dickson. “In the fourth quarter, especially, you know, we had to do more to arouse our main consumer during the holiday season, we did a good job, attracting new consumers. We did a great job reactivating customers, but we lacked interest in the product for our main customer at that time of holidays. “
Dickson warned that the brand's performance would probably remain “agitated” in the next quarters during reset.