gap On Thursday, the last quarter of the dawn of expectations was published, indicating that its transformation during the era of CEO Richard Dixon works better – and faster – than Wall Street expected.

The shares jumped by 17 % in the trading on Thursday.

The retail stores behind the Old Navy, Banana Republic, Athleta and Ranner won expectations in the upper and lower queue during a very important quarter of the holidays and saw that similar sales grow by 3 %, before expectations of a 1 % increase, according to Streetaccount.

Here is how GAP did in the fourth financial quarter compared to what Wall Street expected, based on a survey of analysts by LSEG:

• Arrow’s profits: 54 cents compared to 37 cents expected
• profit: 4.15 billion dollars for $ 4.07 billion expected

The net income of the company was reported for a period of three months that ended on February 1, 206 million dollars, or 54 cents per share, compared to $ 185 million, or 49 cents per share, a year ago.

Sales fell to $ 4.15 billion, a decrease of about 3 % from $ 4.30 billion in the previous year. Like other retailers, GAP has benefited from an additional sale week in the time period, which gave negative comparisons.

Next year, GAP expects sales to grow between 1 % and 2 %, walking with 1.7 % expectations, according to LSEG. For the current quarter, its instructions were a little weaker than expected. Sales are expected to be “somewhat flat”, compared to Wall Street estimates by 1.5 %, according to LSEG.

“We have worked in a very dynamic background over the past few years, and we expect the same thing in 2025,” said Katrina Okonil, a financial president who Jab in Jab in a call with analysts. “As a result, we took a balanced point of view with our guidelines and continued to focus on controlling control tools.”

Like other retailers who fell into the midst of President Donald Trump Trade war With China, Canada and Mexico, GAP works to know the impact of new duties on the company. In an interview with CNBC, Dixon said less than 1 % of its products come from Canada and Mexico, combined, and comes less than 10 % of China.

When asked if the company would raise prices, Dixon said, “The goal is to reduce the effect on the consumer.”

“We will work with our suppliers. We are looking at our cost base, and we will need to balance this while always protecting the company’s structural economy,” Dixon said.

O’Connell added that the customs tariff, as she stood on Thursday, was integrated in the company’s guidelines and said that any effect on the margin is expected to be “relatively little.”

It has been around a year and a half since Dixon took over as CEO of GAP. Under his supervision, the company returned to growth and the brand’s image walked – and in 2024, it provided its highest margin in more than 20 years by 41.3 %.

The previous Mattel executive authority, which is attributed to the revival of the Barbie Empire, brought the same ingenuity to stimulate the signs of GAP. After the fourth consecutive quarter of strong results, the strategy appears to have the power of survival.

Zac Posen’s clothes, creative designer GAP, were worn by celebrities such as Timothee Chalamet, and even the Banana Republic brand of the company has returned to growth. Athleisure Mon Athleta is still escalating, but the company has settled on bleeding and no longer shrinking.

Here is a closer look at how to perform each brand during the quarter.

The largest brand in GAP by revenue witnessed sales of $ 2.2 billion, with 3 % comparable sales, and exports of 0.7 % increase, according to the street street. The brand saw a power of denim and active clothes.

Banner sales grew 7 %, before estimates by 0.8 %, according to Streetaccount.

“The gap has returned to the cultural conversation,” Dixon said in the call. “This brand was built on strong products novels with great marketing, expressing it through big ideas, and over the past year, each of them has been reshaped.”

Chris Job, the chief brand product official, left the gap in October in October, but the company filled the position internally after leaving it. Dixon told CNBC in an interview that the brand has “great leadership” and that it is “equipped with unusual talents.”

The brand Safari Chic, Officewear has seen similar sales growing by 4 %, when analysts expected to shrink by 1.5 %, according to Streetaccount. She continued to build strength in men’s clothes, but still without the CEO. Dixon expects the company to have an update on the role of “soon”.

Next year, GAP 35 will be closed on a net basis, which will be the majority of banana stores, the company said.

Dickson explained that similar brand sales sales decreased by 2 % during the quarter after failing to provide appropriate types of products needed for the basic consumer. Analysts had no expectations for similar ATHLETA sales.

“We definitely entered the cultural conversation again, and we reinforce that we believe in this brand. We have long -term opportunities, but we have a job to do it to reset the brand,” Dixon said. “In the fourth quarter, specifically, as you know, we needed to do more to arouse our primary consumption during the holiday period, and we did a good job in attracting new consumers. We have done a great job in activating customers, but we lack the depth of the product’s interest to our primary customers at the time of vacation.”

Dixon warned that the brand’s performance is likely to remain “interrupted” in the coming quarters, as it continues to reset.