Gap CEO unpacks blowout quarter: ‘The progress is real’

Gap CEO Richard Dickson described the apparel company’s most recent quarter, which impressed Wall Street and indicates the company is maintaining its turnaround.

“The progress is real,” Dickson said. “This year has been a difficult year, but all four brands, every one of our brands, gaining market share – I mean, that’s demonstrating strength in the industry, and this is against a backdrop of a declining apparel industry.”

Along with its namesake brand, Gap owns Old Navy, Banana Republic and Athleta. The retailer posted earnings Thursday after close, solidly beating expectations for earnings and revenue. The stock shot up more than 17% in extended trading. A former Mattel executive celebrated for reviving the Barbie brand, Dickson has led Gap for about a year and a half, helping brands stabilize and return to growth.

According to Dickson, Gap is “always studying the consumer,” and the company saw growth across all income cohorts during the quarter. He also said market share gains were led by lower income cohorts, with particular strength in Old Navy. He added that Gap saw outsize share gains in both top and middle income cohorts, particularly with its namesake brand.

Dickson said Gap is “monitoring developments” around tariffs. President Donald Trump has threatened tariff hikes on Mexico, Canada, and China, countries that manufacture a lot of products for U.S. apparel companies. Gap sources less than 10% of its products from China and less than 1% from Canada and Mexico combined, Dickson claimed. He also said Gap has been strengthening its supply chain and will continue to diversity, while trying to “minimize the impact to the consumer.”

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

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