The apparel giant surpassed earnings expectations in fiscal Q4 2024 despite facing some sales challenges and macroeconomic headwinds.

Gap CEO Richard Dickson described the apparel company's most recent quarter, which impressed Wall Street and indicates the company is maintaining its turnaround. Shares shot up more than 17% in extended trading. Along with its namesake brand, Gap owns Old Navy, Banana Republic and Athleta.

Creative leadership looks good on Gap. It looks even better with a tight belt on. The clothing company, which also owns Old Navy and Banana Republic, posted some impressive results. Its namesake brand’s comparable sales rose 7% last quarter from a year earlier,

Gap has been in the midst of a turnaround under CEO Richard Dickson and has blown away Wall Street expectations for four quarters in a row.

The San Francisco apparel company behind Old Navy, Banana Republic and its namesake brand posted sales and a profit ahead of Wall Street expectations while growing its same-store sales for the period ended Feb.

Gap beat fourth-quarter sales and profit estimates on Thursday, as CEO Richard Dickson's turnaround strategy helped attract customers to its apparel brands including Old Navy and Banana Republic during the holiday quarter.

Ending the year with a holiday performance that beat expectations, Gap Inc. gained market share for the eighth straight quarter.

Richard Dickson, President and CEO, Gap, Inc., told the participants on the company’s Q4 conference call with analysts that Athleta stabilized revenue for the full year, delivering a flat comp and improvements across several key metrics.

The StudioSmooth collection was introduced Tuesday online and in all Old Navy stores, with 10 women’s styles including leggings, bras, tops, a skort, biker shorts, athletic dress and full zips. Prices range from $24.99 to $59.99.