Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The buyer carries his early purchases on Black Friday on Thanksgiving, November 28, 2024, at the Citadel shopping center in Los Anegles.
Robin Beck | AFP | Gets the image
Gap On Thursday, he posted another quarter that undermined expectations, testifying to his turn by CEO Richard Dixon, who works better -and faster -than expected Wall -Strit.
The shares jumped on 17% in extended bidding on Thursday.
Retainer of clothing behind the old fleet, a banana republic, athlete and its oughtie banner, which overcame the expectations in the upper and bottom line during all the important festive quarter and saw that comparable sales grew by 3%before expectations by 1%, streetaccount reports.
Here’s how the gap in the fourth quarter was engaged in financial compared to what Wall -Rest, based on the LSEG analyst survey:
- Profit per share: 54 cents are expected against 37 cents
- Income: 4.15 billion dollars against $ 4.07 billion expected
The company’s net profit has been reported over the three -month period, which ended on February 1, amounted to $ 206 million, or $ 54 per share, compared to $ 185 million, or $ 49 per share, a year earlier.
Sales have decreased to $ 4.15 billion, which is approximately 3% compared to $ 4.30 billion a year earlier. Like other retailers, GAP took advantage of an additional seller of the week last year, which negatively sorted comparisons.
Next year, Gap expects sales to rise from 1%to 2%, according to expectations by 1.7%, LSEG reports. For the current quarter, his leadership was a little weaker than expected. The sales are expected to be “flat to lightly” compared to the Wall -Rate estimates by 1.5%, LSEG reports.
“We have been working on a very dynamic background over the last few years, and we are waiting for the same for the financial 2025,” said Gap O’Catmel Finance Call with analysts. “As a result, we have made a balanced opinion with our recommendations and remain concentrated under the control of the guided materials.”
Like other retailers who hit President Donald Trump trading war In China, Canada and Mexico Gap is working to find out what new responsibilities will have for a company. In an interview with CNBC, Dixon stated that less than 1% of its products came from Canada and Mexico, combined, and less than 10% coming from China.
Asked if the company would increase the prices, Dixon replied that “the goal is to minimize the impact on the consumer.”
“We will work with our suppliers. We look at our costs, and we will need to balance it, always defending the structural economy of the business,” Dixon said.
O’Connel added tariffs when they stood on Thursday, were laid in the company management and stated that any influence on profitability is expected to be “relatively minimal”.
It has been about a year and a half since Dixon took over the position of GAP CEO. Under his leadership, the company returned to growth and repaired the image of the brand – and in the financial 2024, it reached its highest gross profitability for more than 20 years by 41.3%.
Former Mattel leader, who is attributed to the Barbie empire, brought the same skill to revitalize Gap brands. After the fourth direct quarter of strong results, the strategy seems to be the power.
The clothes from the creative designer Gap Zac Posen recently wore celebrities such as Timothy Chalamet, and even a non -professional brand of a banana republic, the company returned to growth. His brand on sports condition Athleta is still fighting, but the company has stabilized blood flow, and it is no longer reduced.
Here is a more careful look at how every brand has played for the quarter.
The old fleet
The largest GAP brand of sales revenue amounted to $ 2.2 billion, with comparable sales increased by 3%, leading expectations by 0.7%, according to Streetaccount. The brand saw the strength in denim and active clothing.
Gap
According to Streetarackount, comparable sales have increased by 7%, which is 0.8%much earlier.
“Gap returned to a cultural conversation,” Dixon said. “This brand was built on strong stories about products with brilliant marketing expressed by great ideas, and in the last year each of them has been implemented.”
The long -standing chief of the brand’s products Chris Gable left Gap in October for Dickie’s, but the company held this position internally after it left. In an interview, Dixon told CNBC that the brand has “excellent guidance” and “staffed by unusual talents”.
A banana republic
According to Streetackount, in Safar Shika, the Officewear brand found that comparable sales increased by 4%when analysts expected they declining by 1.5%. He continued to build forces in men’s clothing, but still without the CEO. Dixon expects the company to get an update about the role of “soon”.
Next year, Gap will close 35 shops on a clean basis, most of which will be banana shops, the company reports.
Remaining
Dexan explained that the comparative sale of the brand fell by 2%, after it did not offer the necessary types of products required for the main consumer, Dixon explained. Analysts did not have expectations for comparable Athleta sales.
“We certainly entered a cultural conversation again, and it enhances that we believe in this brand. We have long-term opportunities, but we have a job to reset the brand,” Dixon said. “In the fourth quarter, very specifically, you know what we needed to do more to excite our main consumer during the holidays, we did a good job by drawing new consumers. We did a great job by reactioning customers, but we lacked the depth of interest in our main client at this holiday.”
Dixon warned that the brand’s performance is likely to remain “sliced” in the quarter forward when it continues to reset.
