After an earnings blow out, CEO explains how Gap is 'reigniting' its brand

• After Gap's earnings report topped Wall Street's expectations on Thursday, CEO Richard Dickson told CNBC's Jim Cramer how his company is managing to turn its business around.
• Dickson took the helm at Gap, which has struggled over the past few years, a little over six months ago, having formerly served as the CEO of Mattel.

After Gap's earnings report topped Wall Street's expectations on Thursday, CEO Richard Dickson told CNBC's Jim Cramer how his company is managing to turn its business around.

"We've been reigniting this brand and drawing on what the brand was so special in the first place, really taking on trend products and amplifying it in new ways that only Gap can," he said. "We're using music, we're using fashion as entertainment, and we're taking basic product—linen, denim, wovens, pants—and we're amplifying the narrative around these categories and driving share growth."

Gap's revenue came in at $4.3 billion, compared with $4.22 expected, according to LSEG, formerly known as Refinitiv. The company's shares jumped about 5% in after hours trading following the report.

Dickson took the helm at Gap, which has struggled over the past few years, a little over six months ago, having formerly served as the CEO of toy company Mattel. He said he's "having a lot of fun" in the role, asserting that "fashion is fun, fashion is entertainment." Dickson has been widely credited with reviving Mattel's Barbie brand, which had seen falling sales when he joined the company in 2014.

In addition to its namesake brand, Gap owns brands including Old Navy, Banana Republic and Athleta. This quarter, Gap's largest banner, Old Navy, returned to growth for the first time in more than a year. The company recently hired celebrity fashion designer Zac Posen as Old Navy's creative director and chief creative officer.

"Zac's creative expertise, his cultural clarity, it's consistently evolved American fashion," Dickson said. "And as he gets more immersed in the business, his influence will be considered really carefully, and the continuity of our brand reinvigoration will be a lot about creativity, design and cultural relevance."

Correction: This story has been updated to reflect the correct spelling of Richard Dickson's name.

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