Gap has reported strong earnings in fiscal 2024 following a successful turnaround plan led by CEO Richard Dickson, who joined the company in August 2023.
For the full fiscal 2024, the company saw its net sales rise by 1% to $15.1 billion, while online sales increased by 4% and comparable sales inched up by 3%.
In particular, Q4 was highly successful, with the retailer achieving a net income of $206 million compared to $185 million in the year prior, while comparable sales rose by 3%.
However, the company saw its net sales fall by 3% to $4.1 billion and its online sales decrease by 2%, with one more week in the previous year.
Dickson said: “We ended the year delivering another successful quarter, exceeding financial expectations and gaining market share for the 8th consecutive quarter.”
“These strong results are underpinned by the momentum we’re seeing in our operational execution, our culture, and the reinvigoration of our brands as they climb in the cultural conversation.
“Looking ahead, 2025 represents an exciting step in our ongoing transformation as we continue to drive toward becoming a high-performing house of iconic American brands that delivers long-term value for our shareholders.”
Amid a challenging retail market, Gap achieved success through its diverse portfolio, including Old Navy, Gap, Banana Republic, and Athleta, which appeals to a wide market.
Dickson added: “What’s really unique about this is our portfolio of brands appeals to such a wide range of consumers, which is where we see a real distinct advantage.
“In a declining apparel market, we’ve been gaining share for eight quarters in a row. And I think it’s really reflecting the resonance of our brands with the consumer and our relative strength in the industry.”
For the upcoming fiscal year, Gap expects net sales to grow by 1 to 2%.
Additionally, the retailer does not expect the extra tariffs to have a significant impact on sales in the upcoming year.
Katrina O’Connell, EVP and chief financial officer, commented: “Specific to tariffs, in fiscal 2024, we sourced less than 10% of our product from China and less than 1% of our product from Canada and Mexico combined.”
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