Gap Inc. Reports Strong Q4 Earnings, Surpassing Wall Street Expectations

The retailer's turnaround strategy under CEO Richard Dickson shows continued success, with market share gains and positive comparable sales growth across key brands.

Gap Inc. achieved a net income of $206 million in Q4, up from $185 million a year ago, with earnings per share of 54 cents, exceeding analyst expectations of 37 cents.
Comparable sales grew 3% during the holiday quarter, marking the fourth consecutive quarter of growth, driven by strong performance in denim and activewear categories.
The company delivered its highest gross margin in over 20 years at 41.3% for fiscal 2024, attributed to improved product management and cost efficiencies.
Old Navy, Gap, and Banana Republic all posted positive comparable sales growth, while Athleta saw a 2% decline, with efforts ongoing to revitalize the brand's core offerings.
Gap Inc.'s shares surged 17% following the earnings report, reflecting investor confidence in the company's sustained turnaround and growth strategy.