American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Politics

Gap turnaround: here’s what Richard Dickson has achieved in 1.5 years

by admin March 9, 2025
March 9, 2025
Gap turnaround: here’s what Richard Dickson has achieved in 1.5 years

Gap Inc (NYSE: GAP) was struggling with sales declines, profitability concerns, and loss of cultural relevance amidst an ever-increasing competition in the retail market up until the first half of 2023.

Then it named Richard Dickson its chief executive, hoping the market veteran could revitalise its brands just as he did with Barbie at Mattel.

And the clothing and accessories retailer’s Q4 results last night suggest it was the right decision to onboard Dickson as he’s seeing incredible success in turning around Gap.  

Gap earned 54 cents a share in its recently concluded quarter – up significantly versus 36 cents per share that analysts had forecast.

Gap saw market share gains across all four brands

Gap currently owns three notable names other than its namesake brand: Athleta, Banana Republic, and Old Navy.

Its shares are being rewarded this morning (up 18% in premarket) as all of those brands “gained market share against a backdrop of a declining apparel industry,” chief executive Richard Dickson revealed in an interview on Friday.

Plus, the New York listed firm saw an uptick across all income cohorts as well, with lower income groups contributing the most to overall market share gains in Q4.

Despite today’s rally, Gap stock is down some 7.0% versus its year-to-date high in late January.

Gap chief executive downplays tariffs impact

Speaking with Jim Cramer, the company’s chief executive also downplayed the potential impact of higher tariffs the Trump administration has announced on Canada, Mexico, and China.

The apparel and accessories retailer relies on China for nearly 10% of its products while it sources less than 1.0% of the assortments from Canada and Mexico combined.

Richard Dickson also confirmed that Gap will continue to diversify its supply chain to further minimise the effect of tariffs on its customers.

“We’re going to be working hard to continue the momentum that we have. Tariffs cost inputs, these are all the day-to-day of doing business,” he added.

Gap stock rallies on upbeat future guidance

Investors are cheering Gap’s quarterly report also because its management offered upbeat full year guidance despite the broader concerns of higher tariffs.

The company based out of San Francisco, California, now sees its sales climbing as much as 2.0% this year. Analysts, in comparison, had called for the revenue to remain flat in 2025.

“The brand campaigns and collaborations are attracting a new generation to Gap while reinforcing the brand to those who loved us for years,” said CEO Dickson in the earnings release.  

Wall Street seems to share his optimism on what the future holds for Gap shares, considering the consensus rating currently sits at “overweight”.

Analysts see upside in the retail stock to nearly $29 on average, which indicates potential for more than 20% upside on top of today’s gains.

The post Gap turnaround: here’s what Richard Dickson has achieved in 1.5 years appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
LATAM crypto update: Colombia plans crypto regulations, Nexo and Sphere to reduce cross-border payment times
next post
Brazil’s economy expands 3.4% in 2024, beating expectations

Related Posts

Biden’s inner circle silent as party reels following...

June 30, 2024

RFK Jr running mate announcement may boost his...

March 27, 2024

Conservatives unload on ‘political’ NYC prosecution of Trump...

May 31, 2024

Michigan primaries show weak spot for Biden, deliver...

March 1, 2024

Alina Habba accuses Kamala Harris of ‘committing a...

August 1, 2024

Five areas could tell us a lot about...

March 6, 2024

Fauci denies seeking to suppress COVID-19 lab leak...

June 5, 2024

Jill Biden ‘stunned’ Joe’s family during health scare,...

February 26, 2024

US launches Middle East airstrikes after soldiers’ deaths:...

February 3, 2024

Democrats rush to keep Trump off ballot after...

March 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,032)
    • Investing (2,462)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved