Buy This Stock to Bet on a Textbook Retail Turnaround

After years of being in the doghouse, Wall Street is finally buying what Gap (GPS) is selling. The company is the largest specialty retailer in the U.S., and has four main divisions: Old Navy, Banana Republic, Gap, and Athleta.

On May 31, the fashion retailer’s shares jumped more than 28% — the most since November 2023. This followed a blowout earnings report that showed a fashion overhaul by relatively new CEO Richard Dickson is working.

Dickson became known in the past few years as the main force behind the revitalization of the Barbie franchise for Mattel (MAT). Last August, he was brought on by Gap to turn its fortunes around.

His strategy is to introduce trendier styles across its brands, and ramp up marketing efforts to attract choosy shoppers. To do so, Dickson has embraced…