In a Thursday interview with CNBC’s Jim Cramer, Gap CEO Richard Dickson reviewed the attire maker’s current quarter and addressed how tariffs will have an effect on enterprise.
“There are things that you can control and there are things that you can’t control,” Dickson stated. “I think what we are representing is, the things that we can control we’re doing really well. The team is doing a great job with our mitigation plans.”
Gap — which owns Banana Republic, Old Navy, Athleta, in addition to its namesake model — posted combined quarterly outcomes Thursday after shut, sending shares down in prolonged buying and selling. The firm reported a slight income miss, and it warned that tariffs would influence earnings greater than initially anticipated.
During its final report in May, Gap predicted tariffs would price between $100 million and $150 million. But the corporate stated it now estimates prices to be between $150 million and $175 million.
Dickson stated his firm has been “thoughtful on our adjustments to sourcing, manufacturing, assortments and other actions.” He stated the general quarter was strong, noting that the corporate managed one other consecutive quarter of optimistic comparable gross sales.
According to Dickson, investments in social media and promoting are paying off, saying Gap has grow to be a “powerful pop culture brand.” He pointed particularly to its latest denim advert that includes Katseye and Kelis’s 2003 hit “Milkshake,” calling it one of the vital iconic model campaigns within the firm’s historical past that is seeing viral success on platforms like TikTookay.
He additionally stated the “unmute button” has been the very best level of engagement on the corporate’s web site, which he stated means customers are “connecting music with fashion.”
Dickson highlighted enchancment in Banana Republic, which had lengthy been a laggard for the corporate. The quarter noticed the model’s comparable gross sales rise 4%, far forward of expectations of 0.2%, in response to StreetAccount. Dickson known as Banana Republic “a sleeper in our portfolio.”
“We’ve tightened up our assortment, we’ve refined our product esthetic, we’ve enhanced our marketing campaigns, we’ve improved our service levels, we’ve worked on fit and function,” he stated. “We found the right price value equilibrium to drive consistency.”
