Gap Inc. has posted a notable quarterly sales increase, indicating that new CEO Richard Dickson’s strategies may be beginning to yield results. Dickson, who took the helm last August, celebrated the first quarter in years where all four of the company’s brands—Gap, Old Navy, Banana Republic, and Athleta—reported gains, excluding newly opened or closed stores. This led to a 3% overall sales increase for the quarter.
Following the positive results, Gap’s shares surged 21% in after-hours trading. Dickson, known for revitalizing Barbie at Mattel, is infusing new energy into Gap by collaborating with fashion designer Zac Posen. Posen’s designs, including a viral white shirtdress worn by Anne Hathaway, have sold out quickly. Additionally, items from a partnership between Gap and fashion brand DÔEN are nearly all sold out.
Gap’s net sales increased 3% to $3.4 billion for the quarter ending May 4, swinging to a $158 million profit from a $18 million loss the previous year. The company exceeded analysts’ expectations of $3.3 billion in sales and $59.5 million in net income. Buoyed by this strong start, Gap has raised its full-year guidance, now anticipating slight sales growth and a significant increase in operating income.
