Trench Profits (GAP) Q4 2024

gap On Thursday, she posted another quarter that exploded waiting, showing her turn under Ceo Richard Dickson is working better – and faster – as Wall Street predicted.

Shares increased 17% in extended trading on Thursday.

The retail seller after Old Navy, Banana Republika, Athleta and her flag with his name beat expectations on the upper and lower lines during all important holidays and saw comparable sales growing 3%, ahead of up to 1%, according to streetaccount.

Here’s how he did in his fourth fiscal trimester compared to what Wall Street predicted, based on a study by analysts by LSEG:

• Profits for Action: 54 cent vs 37 cents are expected
• Income: $ 4.15 billion versus waiting $ 4.07 billion are expected

The company’s reported net revenues for the three-month period ended February 1 were $ 206 million, or 54 cents per share, compared to $ 185 million, or 49 cents per share a year earlier.

Sales fell to $ 4.15 billion, lowering about 3% by $ 4.30 billion a year ago. Like other retailers, GAP took advantage of an extra week of sale in the previous year, which negatively sculpted comparisons.

Next year, GAP expects sales to increase between 1%and 2%, in accordance with expectations of 1.7%, according to LSEG. For the current quarter, his instruction was slightly weaker than expected. It is waiting for sales to be “flat to raise a little”, compared to Wall Street estimates of 1.5%, according to LSEG.

Like other sellers captured in the midst of President Donald Trump’s trade war with China, Canada and Mexico, GAP has worked to understand the impact that new tasks will have. In an interview with CNBC, Dickson said less than 1% of its product comes from Canada and Mexico, combined, and less than 10% comes from China.

When asked if the company would raise prices, Dickson said “the goal is to minimize the impact on the consumer.”

“We will work with our suppliers. We are looking at our cost basis, and we will have to balance it with the protection of the structural economy of business,” Dickson said.

GAP Finance Chief Katrina O’Connell added tariffs, as they stayed Thursday, entered the company’s instructions and said any impact on the margin is expected to be “relatively minimal”.

It’s been about a year and a half since Dickson took over the CEO of GAP. Under its direction, the company has returned to the growth and repaired its brand image – and in the 2024 fiscal, gave its highest gross margin in more than 20 years in 41.3%.

The former Mattel executive, trusted for the revival of the Barbie Empire, has brought the same ability to revitalize GAP brands. After a fourth direct quarter of the strong results, the strategy seems to have residence power.

Dress from Zac Posen, GAP’s creative stylist, was recently worn by celebrities like Timothee Chalamet, and even the Banana Banana Republic Company brand has returned to the rise. Its athletic brand Athleta is still fighting, but the company has stabilized bloodshed and is no longer decreasing.

Here you have a closer look at how each brand performed during the quarter.

The largest GAP brand from sales without sales of $ 2.2 billion, with comparable 3%sales, reaching 0.7%expectations, according to Streetaccount. Brands without force in denim and active clothing.

Comparable sales of the name Banner increased 7%, much before 0.8%UP estimates, according to Streetaccount. Chief brand products Chris Goble La Gap in October for Dickie’s, but the company filled the position inside after he left. Dickson told CNBC in an interview that the brand has “great leadership” and is “staged with extraordinary talent”.

Safari Chic, office clothing brand without comparable sales grow 4%, when analysts expected them to reduce by 1.5%, according to Streetaccount. It continues to build strength in men’s clothing, but it is still without a CEO. Dickson expects the company to have an update on the “soon” role.

Comparable athletics brand sales fell 2% during the quarter as it failed to offer the right types of products needed for its essential consumer, Dickson explained. Analysts had no expectations for comparable sales of Athleta.

“We have probably entered the cultural conversation again, and reinforces that we believe in this brand. We have long -term opportunities, but we have work to do to restore the brand,” Dickson said. “In the fourth quarter, very specifically, you know, we had to do more to harass our essential consumer during the holiday season, we did a good job by attracting new customers. We did a great job by reactivating customers, but we lacked the depth of interest of our main client at the time.”