Bloomberg Talks: Gap CEO Richard Dickson Talks Turn Around, Earnings

Date: November 21, 2025
Host: Lisa Abramowicz, Bloomberg
Guest: Richard Dickson, CEO of Gap Inc.

Episode Overview

In this episode, Bloomberg’s Lisa Abramowicz interviews Richard Dickson, CEO of Gap Inc., focusing on the company’s turnaround, recent earnings, winning retail strategies, and approach to cultural relevance. Dickson discusses Gap’s momentum across brands, consumer behavior trends, strategic marketing collaborations, and how Gap is addressing tariff impacts—all as the company heads into the critical holiday season.

Key Discussion Points & Insights

1. Gap’s Turnaround and Retail Success

[00:29–01:37]

• Gap’s recent performance:

  • Gap Inc. saw consistent growth across its main brands: Old Navy (up 6%), Gap (up 7%), and Banana Republic (up 4%).
  • Achieved the seventh consecutive quarter of positive comparable sales.
  • Gross margin exceeded expectations.

• Consumer behavior across income cohorts:

  • Dickson emphasizes that growth was observed equally across low, middle, and high-income customers.
  • Despite macroeconomic pressures on lower-income consumers, Gap’s “price, value, style” resonated broadly.
  • “Our customers are finding our price, our value, our style, breaking through the competition and ultimately we're very excited to be winning in the marketplace, giving us a lot of confidence as we head into the holiday season.” – Richard Dickson [01:33]

2. Holiday Season Outlook and Key Categories

[02:14–03:03]

• Dickson reports strong early momentum for the holiday season, with notable strength in denim, sleepwear, and fleece.
• Gap’s marketing execution and expanded digital/offline capabilities (e.g., Old Navy’s DoorDash partnership) are highlighted as drivers of convenience and customer service.
• “Our stores are ready, our teams are fired up and we're looking to to a strong finish to the year.” – Richard Dickson [02:55]

3. Cultural Relevance and Brand Collaborations

[03:03–04:43]

• The “battle for cultural relevance” is integral to Gap’s strategy.
• Brand collaborations are central, but must be “win win” and authentic.
• 13+ major collaborations have driven excitement and introduce Gap to younger demographics, with campaigns such as “better in denim” achieving 8 billion impressions and 500 million views globally.
• “What I will say is that these are very precise and… need to be win win authentic to the customer. They do attract different audiences. In the cat’s Eye case, we did an extraordinary job continuing to introduce and discover Gap to Gen Z which has been a really exciting segment for us.” – Richard Dickson [04:12]
• Denim has been particularly successful with “double digit growth.”

Notable Moment

• Lisa playfully suggests Dickson come “dancing to Milkshake” due to the viral nature of Gap’s new marketing [03:04].

4. Responding to Competition in Denim

[04:43–05:20]

• Addressing whether Gap’s campaign was a response to American Eagle’s Sydney Sweeney ad:
  • Dickson welcomes competition, noting Gap’s focus on originality with its “better in denim” campaign.
  • “We are front and center with our strategies… in the context of the denim dialogue, we certainly had our fair share of goodwill.” – Richard Dickson [05:13]

5. Tariffs and Cost Management

[05:20–06:10]

• Gap’s mitigation efforts amid tariffs include sourcing and assortment adjustments to maintain value and quality.
• The third quarter saw a 190-basis point tariff impact—expected and offset by strong top-line momentum and better regular price sell-through.
• “We’re going to continue to pursue our mitigation plans but we remain focused, most importantly, style, quality, quality and value for our consumer.” – Richard Dickson [06:06]

Notable Quotes

• “Our leading brand, Old Navy, the largest brand, delivered an outstanding quarter. We were up 6%, Gap up 7%, Banana Republic up 4% gross margin exceeding expectations.” – Richard Dickson [00:55]
• “Cultural relevance is a very important part of our playbook and we talk about relevance with revenue.” – Richard Dickson [03:26]
• “Gap brand has launched over 13 collaborations that continue to just drive excitement and surprise.” – Richard Dickson [03:59]
• “It was literally a global takeover and it’s become one of the brand’s most successful campaigns to date.” – Richard Dickson [04:29]

Episode Timeline

| Timestamp | Segment | |-----------|-----------------------------------------------------------------| | 00:29 | Introduction; recent retail wins and strategy | | 01:33 | Segment on consumer cohorts and sales performance | | 02:14 | Holiday season outlook and category focus | | 03:03 | Discussion of brand collaborations and marketing campaigns | | 04:43 | Addressing competitive positioning in denim | | 05:20 | Tariffs and cost mitigation strategies | | 06:23 | Wrap-up; thanks and closing remarks |

Memorable Moments

• Lisa’s quip about Dickson dancing to “Milkshake” [03:04], referencing viral ad campaigns.
• Dickson’s reflection on “relevance with revenue” as the true test of brand success.

Summary prepared for those seeking a comprehensive yet concise overview of Gap’s recent strategy, operational focus, and outlook as articulated by CEO Richard Dickson on Bloomberg Talks.