Gap Stock Jumps as Old Navy Parent Boosts Outlook | Global News Avenue

The Gap stock (gap) Premarket trading volume surges after apparel retailer reports stronger than expected The third-quarter results boosted full-year sales prospects.

The company behind the Old Navy, Banana Republic and Athleta brands now expects fiscal 2024 sales volume Growth was between 1.5% and 2% – compared with previous guidance of “modest growth”.

The higher guidance came after quarterly results beat expectations. Gap’s third-quarter revenue reached $3.83 billion, a year-on-year increase of 2% Earnings per share (EPS) 72 cents.

analyst had expected Visible Alpha estimates third-quarter revenue of $3.81 billion and earnings per share of 55 cents.

Results show CEO Dickson’s success in reviving brand

The results mark the retailer’s Chief Executive Officer (CEO) Richard Dickson, who joined from toymaker Mattel, where he revived the Barbie franchise.

He took the top job last August and has since been on a Ambitious turnaround plan after years of slow growth. Gap’s brand thrived during the heyday of mall culture but has struggled to attract younger Gen Z and millennial consumers, according to a 2022 report. CNN article.

Dickerson said in a statement: “Continued execution of our strategic priorities, including the rigor and repetition we have adopted in our brand revitalization playbook, makes us a stronger company and demonstrates our commitment to unleashing Gap Inc. ” continues to make progress towards its full potential,” adding that the holiday season “is already off to a great start.”

Gap shares are up 15%, bringing their year-to-date gains to about 5%.