The specialty apparel company has been investing in technology that helps it bring products to market and optimize processes, Gap President and CEO Richard Dickson said Thursday (Aug. 28) during the company’s quarterly earnings call.
“These investments are designed to keep us on offense, strengthening the capabilities and infrastructure that fuel our brands and position us to drive sustained value over time,” Dickson said.
Gap Inc., whose brands include Old Navy, Gap, Banana Republic and Athleta, has been implementing a multi-faceted approach to revitalizing its brand, improving its operations and embracing digital transformation since Dickson became CEO in August 2023.
During Thursday’s earnings call, Dickson said that using technology to help bring product to market has been a key focus of the company’s investments.
“We’re levering technology to reengineer how we imagine, design, develop and assort with a model that is more responsive, dynamic and data driven,” Dickson said.
Optimizing processes has been another key focus of these investments. Dickson said Gap aims to create a digitally enabled workforce, “unlocking productivity, sharpening accuracy and empowering our teams to do their best work.”
“This includes leveraging AI in demand, planning, supply chain and everyday workflows, giving teams more time to focus on innovation, storytelling and strategy,” Dickson added.
During the quarter ended Aug. 2, Gap Inc. saw its net sales remain flat year over year while its comparable sales were up 1%, according to a Thursday earnings release.
Three of the company’s four brands recorded gains in comparable sales during the quarter. Old Navy’s comparable sales were up 2%, Gap’s were up 4% and Banana Republic’s were up 4%. Athleta’s comparable sales were down 9%, per the release.
As it continues its work to reinvigorate its brands and strengthen its platform, Gap Inc. plans to keep investing in its business. The company has targeted fiscal year 2025 capital expenditures in the range of $500 million to $550 million, according to a presentation released Thursday.
“We’re advancing our transformation with discipline, clarity and momentum, and are focused on executing with excellence in the second half,” Dickson said during the call.
