Bloomberg Talks Gap CEO Richard Dickson Talks Retail Plan
May 30, 2025
Richard Dickson, the CEO of Gap known for steering major retail strategies, shares insights on the company’s financial landscape. He reveals the potential $300 million tariff impact contributing to stock declines while maintaining a positive outlook for long-term resilience. Dickson discusses the growth of Old Navy, highlighting successful campaigns and plans for revitalizing struggling brands like Athleta and Banana Republic, all while eyeing new leadership to enhance their market presence.
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Gap's Strategy Drives Growth
- Gap achieved five consecutive quarters of positive comparable sales and nine consecutive quarters of market share gains.
- The company's reinvigoration strategy is working despite a complex market environment, shown by expanding margins and strong cash flow.
Tariff Impact Mitigation and Sourcing
- Gap mitigated over half of the expected tariff impact through sourcing and assortment adjustments.
- The company aims to diversify sourcing, having reduced China sourcing to under 3% and plans no country to exceed 25% by 2026.
Old Navy's Market Leadership
- Old Navy leads with nine consecutive quarters of market share growth and 3% comparable sales increase.
- The brand focuses on activewear and denim, driving market leadership with campaigns like Old Navy New Moves.