From CNBC:

Old Navy, Gap Inc.’s largest banner, sees growth return with sales up 6% to $2.29 billion. Overall gross margin rises to 38.9%, exceeding expectations at 36%. Gap reports net income of $185 million, with sales up 1% to $4.3 billion during the quarter. In-store sales rose 4%, while online sales fell 2%.

CEO Richard Dickson says Gap is regaining its cultural relevance as a pop culture brand, moving away from being just a clothing retailer. Gap is cautious about sales outlook amid uncertain consumer environment but expects to achieve growth in fiscal 2024. Gap has hired fashion designer Zac Posen to revitalize its legacy brands.

Gap is focusing on reviving its four brands, including Old Navy and Gap, which show signs of progress. Athleta and Banana Republic have been struggling. Banana Republic sees aesthetic improvements but needs time to build momentum. Athleta is in recovery mode with a new CEO seeing early successes. Each brand’s performance in the fourth quarter varies. Old Navy and Gap show growth, while Banana Republic and Athleta lag behind.



Read more at CNBC: Gap (GPS) earnings Q4 2023