Gap’s Denim Campaign Surges to 400 Million Views, CEO Claims Victory
UPDATE: Gap Inc.’s new “Better in Denim” ad campaign has exploded in popularity, achieving a staggering 400 million views within just days of its launch. CEO Richard Dickson proclaimed the campaign a cultural phenomenon during the company’s second-quarter earnings call on July 27, 2023.
The ad, featuring the girl group Katseye dancing to Kelis’s hit “Milkshake,” has not only gone viral but has become the No. 1 search on TikTok. Within the first three days, it garnered 20 million views, surpassing the total views of Gap’s last four ad releases combined. “These aren’t small facts or small stats. This is proving that Gap is a powerful pop culture brand,” Dickson stated, emphasizing the campaign’s role in reinforcing the brand’s cultural relevance.
Despite the ad’s success, Gap reported earnings that fell short of Wall Street estimates, leading to a slight decline in shares after hours. Nonetheless, the earnings call felt more like a celebration of denim than a financial briefing. Dickson assured investors that the campaign’s record-breaking response is indicative of a successful revival strategy he initiated since taking over as CEO in 2023.
“This is striking range of probably being one of the most iconic brand campaigns, certainly that we’ve done,” he added. The ad has sparked significant attention at a time when competitors like American Eagle also launched denim campaigns, albeit with mixed reactions. While American Eagle faced controversy over its ads featuring actress Sydney Sweeney, Gap’s approach has resulted in a viral sensation without the backlash.
Dickson highlighted that Gap’s comparable sales rose 4% compared to last year, marking seven consecutive quarters of growth. Industry experts, including Emarketer principal analyst Sky Canaves, noted that while Gap enjoys renewed cultural relevance, challenges like rising tariffs and inventory issues could cloud the brand’s outlook. The company has projected tariff costs between $150 million and $175 million, an upward revision from earlier estimates.
As Gap rides this wave of momentum, all eyes are on the brand’s next steps. With its “Better in Denim” campaign making headlines, the focus shifts to how the company plans to navigate its financial hurdles while maintaining its cultural impact.
Stay tuned for more updates on Gap’s ongoing success and industry developments.
