Gap’s stock climbed more than 9% on Friday after CEO Richard Dickson said something that would’ve sounded impossible a couple of years ago: the company is now appealing to shoppers across all income levels… and the numbers seem to back him up.

“We’re winning with all income cohorts,” Dickson said, pointing out that Old Navy, Gap, and Banana Republic are all seeing steady demand. It’s a noticeable shift for a company that spent years trying to figure out who it was and who it was selling to.

For the quarter, Gap reported $3.94 billion in revenue, a 3% increase from last year and slightly ahead of what analysts were expecting. Same-store sales rose 5%, making this the seventh straight quarter of growth… something not many retailers can claim right now. Adjusted earnings landed at $0.62 per share, beating Wall Street’s forecast of $0.59.

Old Navy continued to be the company’s strongest engine, posting a 6% increase in comparable sales. The Gap brand surprised to the upside with a 7% jump, helped by new denim, basics, and updated fleece. Banana Republic saw a smaller but still solid 4% lift. The only part of the business still lagging was Athleta, which saw sales drop 11% as the company tries to reposition the brand.

A big part of Gap’s recent progress comes down to product and marketing that actually caught people’s attention. A denim campaign featuring the girl group Katseye went viral earlier this year and helped drive full-price sales… something Gap hasn’t always been able to do. Fleece and sleepwear collections also performed well, and customers bought more items at regular prices rather than waiting for discounts. Online sales grew 2% and now make up about 40% of total revenue.

Analysts, who have watched Gap struggle for years, liked what they saw this time. Jefferies analyst Corey Tarlowe said the quarter “signals strength,” noting that consistent sales growth across multiple brands is a sign that the company’s strategy is starting to stick. Citi analyst Paul Lejuez said both Old Navy and Gap are in “healthy positions” heading into the holidays, helped by better fashion choices and stronger marketing.

Gap is also making changes to its store footprint. The company has roughly 2,500 locations across its four major brands and expects to close about 35 stores this year. Dickson said the goal is shifting toward stores that draw more traffic and can support bigger product pushes going forward.

Clearly, there are still real hurdles ahead. Lower-income shoppers remain stretched, which could slow Old Navy if the economy softens. Athleta also remains a work in progress as the athleisure boom cools. Even so, Gap heads into the holiday season with more momentum than it’s seen in years.

After nearly a decade of failed turnarounds, the company finally has multiple strong quarters behind it… and investors are starting to believe the comeback might actually stick.

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.