Gap jumps as Q4 results beat estimates on strong holiday demand

Shares of Banana Republic parent Gap GAP.N up 18% at $22.95 before the bell

Company beats Q4 sales and profit estimates on strong holiday demand as CEO Richard Dickson's turnaround strategy starts to bear fruit in attracting customers to its apparel brands

Gap, however, expects annual net sales growth between 1% and 2%, midpoint of this range is slightly below expectations of a 1.7% rise, according to data compiled by LSEG

Barclays raises PT to $33 from $32 and adds "holiday capped off the year on a high note with momentum building entering 2025, suggestive that initial FY25 guidance looks conservative and beatable"

J.P.Morgan lifts PT to $30 from $29

"We expect investors to look for continued consistency in performance and growth across the brand portfolio, along with improved visibility to longer-term profitability potential" - Telsey Advisory Group

In 2024, GAP had risen 13%