Gap CEO celebrates 55th anniversary with new brand vision

August 22 marks the 55th anniversary of apparel giant The Gap (GPS) opening its first store in San Francisco. Live from the NYSE, Gap CEO Richard Dickson joins Yahoo Finance executive editor Brian Sozzi to discuss this milestone and the company's future plans.

Dickson highlights the company's decision to change its ticker symbol from GPS to GAP. He explains that GPS originally stood for "Gap Stores" when the brand went public in 1974. However, as the company expanded its portfolio "of iconic American brands that shape culture," Dickson states, "there's no better, more milestone moment than our 55th [anniversary] to declare it with pride."

Reflecting on the company's impact, Dickson adds, "It is an extraordinary company with legacy moments and many of our moments define culture."

Addressing the challenges he faced upon taking the helm a year ago, Dickson outlines his vision around revamping the company. In the short term, he plans to concentrate on "fixing the fundamentals," noting that "retail is detail," encompassing products, pricing, and more

For mid-term and long-term goals, Dickson aims to "reinvigorate" Gap's brands. The Gap's fashion portfolio also includes Old Navy, Banana Republic, and Athleta.

"They have a strong position with consumers that resonates — we just have to dial up our storytelling, dial up our fashion, make sure the basics are always there, create compelling experiences both online and offline."

Dickson emphasizes the importance of marketing strategies. "The key to really effective marketing is being where your consumer is," he notes, stressing the need for continued presence, creative asset utilization, and allowing creative freedom. He notes the brand strives to "move at the speed of culture."

Acknowledging the current economic climate, Dickson says, "We are all working against a backdrop of macroeconomic uncertainty." While maintaining caution about consumer behavior, he remains optimistic, stating that "there's always winners in every space."

The Gap is scheduled to report its second quarter earnings results next week on Thursday, August 29.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith

Video transcript

Welcome back to Yahoo Finance.

Now, if you're on the Yahoo Finance platform and search for Gap on the platform, something might look a little different.

That is, they have a new stock symbol.

Let's break all that down.

And what gap is up to a gap?

C Richard Dixon Richard.

Good to see you as always.

So look.

I mean, this has been GPS was the stock ticker for as long as I've known.

Gap was 1976.

The company went public.

Take us through the decision because you still have family members of the founders on this book.

So this isn't like I want to switch the stock ticker and let's just get it done.

Yeah, well, it's a great question.

We do have the Fisher family who's still very much connected to the heritage of the company, both present and also future.

And it was, to some extent, an obvious conversation.

I mean, GPS or GAP, right?

I mean, so there is, to some extent, one of those moments where you go, like, why not?

Why was it GPS?

It was actually that was a good question When we asked, like What if we change it to GAP.

The question of what is GPS stand for was one that we had a few minutes to try and figure out.

It was actually Gap stores.

And today you know, we're a portfolio of iconic American brands.

That shape culture started with, of course, the iconic Gap brand.

So there's no better, more milestone moment than our 55th to declare it with pride and say, You know what?

Our ticker is Gap, and so there's a lot of energy behind it.

It is obvious, and we couldn't be more excited about it.

Well, there's also two dates of significance on this day.

What the first Gap store opened in in San Francisco in the 22nd, right?

How are you playing into the company's heritage but trying to finally move gap into the into an era of coolness where it hasn't been prior to when you took over?

Well, as you note, August 22nd, 1969 was the first gap store in the heart of San Francisco.

It was 55 years ago.

It was also one year ago today that I started as the CEO of G. I took it away, but it was It was a symbolic start date for me to really recognise the heritage of the company.

It is an extraordinary company with legacy moments, and many of our moments define culture.

Whether we introduced casual Fridays and now every day, casual, to the extent that we've been defining American fashion and culture with our portfolio is a recognition of the power of the portfolio.

Now we've gone through peaks and pits and ups and downs and in the context of where we are now, As you know, Brian, we've spent a lot of time driving our strategic priorities.

Bringing back financial and operational rigour enable us to reinvigorate these brands to the extent that we could revitalise them and be part of the cultural conversation.

Great product, great price, great storytelling, great store experiences.

These are all fundamentals that we're working really hard to fix, and the last, but certainly not least is really energising.

Our culture gap has always been about extraordinary people.

There's been legendary talent that has been part of our blueprint that got us here, and it's still very ingrained in our culture that is really all about our people.

Early on in your 10 year gap, Richard.

We had coffee at the New York City office and you did what any new leader does when they get into a company.

I mean, they're questioning the people in the room, thinking about what a company may execute on over the next few months.

But now that you're a year in what is the next 2 to 3 years, how will you define that?

And how will it look different compared to your first year at home where you were fixing a lot of things that didn't work?

I mean, the website, which is not good.

Look, we we admit there were a lot of challenges and ultimately, you know where we've sort of sequentially created.

Our path for transformation is really short, mid and long term objectives.

In the short term, we are concentrating on fixing the fundamentals.

You know, this retail is detail and every moment matters every interaction with our consumers.

We've got to have the right price, the right product, the right assortment at the right time.

That is not easy to the scale that gap operates.

And so really digging in with financial and operational rigour, putting the company back on solid financial footing running leaner inventories, less discounting, expanding gross margin controlling the controllable.

These are all the mechanics of running a better business now.

Once we get that right and we're starting to prove that you can rely on us to say we're going to do what we say we're going to do we have a playbook to reinvigorate our brands.

These are brands that are well known iconic American brands that shape culture.

They have a strong position with consumers that resonates.

We just have to dial up our storytelling dial up fashion, make sure the basics are always there, create compelling experiences both online and offline, and we've got a bright future to go and create.

I was scrolling led, and I was talking to you and and there was this video of that, your athletic brand.

It was goats walking around the Athleta.

Uh, I guess it was headquarters or something.

What the hell is that?

I mean, it's just wild, but I think that is always been your secret sauce.

That marketing component.

How will gap show up for marketing this holiday season?

I remember when I covered Gap as an analyst, how the company marketed during the holiday was always like a hot discussion.

Are you ready to say you know what?

We got these brands where they need to be, and we're We're all in this holiday season.

Yeah.

Look, marketing is a complex subject when you break it all down.

Today, it's obviously very different than it was 55 years ago.

It was different than it was a year ago.

The key to really effective marketing is being where your consumer is, and that means you need to be everywhere in some way, shape or form.

You need to create assets that are compelling, intriguing, that break through.

You need to get creative freedom, the empowerment, to narrate with a strong brand position that creates assets that engage people all around the world around your brand.

And the Athleta recent post with the Goats is a perfect example of creative.

Come on, they're definitely goats.

Simone Biles, Katie Ledecky honouring them as ambassadors for the Athleta brand with a really clever way of personifying, it is indicative of new creative spirit that is part of Gap Inc. You can see it in all our brands.

Gap Brand today launched the get loose campaign, which is really declaring a trend of baggy and loose fit, where gap has always been synonymous with trends and taking basics and personifying them.

Fashion is entertainment.

So many of our brands are starting to really curate and be part of the cultural conversation.

And ultimately, that is where brands need to be part of the cultural conversation and you need to move at the speed of culture, which means you're not always going to get it right.

But you need to continuously swing.

We're getting a lot of weird reads on the consumer, Richard.

So a week two weeks ago, Walmart CFO told us that consumer buying apparel good target CF CFO CO told me this week.

Consumers are buying apparel.

What's your vibe and read on the consumer?

You know, as we enter the critical back half of the year, we're seeing similar dynamics and consumer behaviour for the last year that was similar to last year.

We are all working against a backdrop of macroeconomic uncertainty.

We're all coming up with political unrest in the context of an election that's about to happen.

There's all sorts of dynamics that we're all navigating, so I it's the right tone to be cautious in the context of where the consumers are navigating with all the various different dynamics that we're all dealing with.

That being said, there's always winners in every space.

We're really proud of the work that we're doing as we know.

We're in a quiet period right now, but we've been gaining momentum.

We've been gaining share.

We've been dialling up categories where we believe we have a leadership persona and personification.

As we continue to reinvigorate these brands, we're going to see a lot more momentum.

And so again, I think the consumer as they migrate a little bit more towards value that really speaks to a welcome map for old Navy.

I mean, we are the style authority in the value space in apparel.

So we've got a great portfolio arguably good, better best in the context of our three.

And then Athleta is really serving that performance athletic, active gear, consumer.

And so we couldn't be more excited about our positioning where the consumer is and where we're there to meet them.

I'm not as tall as you, Richard, but I look good in these loose cap jeans.

I mean, you could tell me if I if I would look terrible.

You look great every day.

And that better be banana head to toe.

But I can get you into comparing new loose jeans and you will be a hip.

As as as y'all would say, no comment.

Richard Dixon.

Good to see you.

Gap COB.

Well, we'll talk to you soon.