Richard Dickson's Gap Revival Continues | Fast Five Shorts

And producer, I got a question for you.

Is your milkshake better than mine?

Because Gaps comparable sales surged after Milkshake after its Milkshake denim ad with Cat's eye.

According to CNBC, Gap Inc. Said Thursday its comparable sales rose 5% during the fiscal third quarter, driven by strong revenue at its namesake brand after its viral Better in Denim campaign.

With girl group Cat's Eye putting aside pandemic related spikes, the rise in comparable sales was the strongest growth for Gap since its fiscal 2017 holiday quarter and was well ahead of Wall street expectations of 3.1%.

During the quarter.

Gaps comparable sales rose a staggering 7%.

Old Navy's rose 6%.

Banana?

Yes, banana was up 4%.

While athletics comps.

Yeah, they kind of were still not very good.

They were still down 11%.

And has Dixon, Richard Dixon, officially right of the ship at the Gap?

Well, it's not surprising to me that as a former CEO of an entertainment company that he is making the Gap entertaining again.

He's got Gen Z talking about it.

Millennials are talking about it.

Xers are you Gen Xers are even nostalgic for the Gap of old.

Anecdotally, my friends and I have been talking about it and passing around the, the new TV spot that they just put out with the choir.

I think it's great content, it's entertaining.

But now what will that mean for getting butts in Gap denim?

That's the question that I have because I think it's piquing a lot of curiosity.

But and based on this quarter's success, I think it appears that it's piquing interest from people and that's for sure a great start.

So I think that Richard Dixon should get credited for that.

But even Dixon himself said, you know, this is a story about consistency, a mix of better product marketing and partnerships to make maintain this growth.

So I think even Dixon knows, like there's still work to be done before we give him the award for saving the Gap and completely turning it around.

But I do think that this is a good start.

You know, first you have to tell people that you exist again and he's doing a good job of that.

But as a former Gapper, how do you feel about this?

I think, I think he's definitely doing it seems like he's turning things in the right direction, but I think it's still too early to tell.

But I like the trend.

You know, I think I went into the numbers a little bit more on this story.

You know, I looked at their two year stacks for the last three quarters, Q1, it's plus 5, Q2, plus 4, Q3, plus 6.

That's A.

That's pretty good.

That's pretty good results.

And if I go back three years, the only quarter that isn't positive is Q2.

So overall, I think that's pretty good performance.

The profit line from the quarter worries me a bit.

They said that's related to tariffs, but I'm curious if that's actually masking anything else.

You do have to ask that question, I think.

And the other thing I worry about, and you kind of alluded to this too, is the flashy marketing.

Marketing is one thing, but you have to get the product right, too.

And both are, both are hard to do and get right year over year.

Marketing can spur you to buy once, but can it spur you to buy it that second time?

So when you get that butt into the denim the first time, do you like it enough to want to come back?

Because that flashy marketing is not going to get you back the second time.

So.

But to me, when I look at the financials, the proof will be in the pudding.

Falling Q1 of 2026, because that looks like the big comp hurdle in the numbers.

Like, if you can get that again, you can show a positive comp in the first quarter, then, yeah, I'm going to give him the official you've turned this company around award and you're doing a great job seal of approval.

All right, well, hopefully it's a happy holiday for Gap.

Otherwise, I don't know.

I don't know what's next.

I don't know what.

I don't know who can save you when it comes to these celebrity spots, but, yeah, gotta, gotta have the product down.