Gap clearly hit all the high notes Wall Street needed to hear: Comp sales improvements, higher year over year earnings and minimal tariff impact.

“For the fourth quarter, Gap posted a profit of $206 million, or 54 cents a share, compared with $185 million, or 49 cents a share, for the same period a year earlier. Analysts had forecast per-share earnings of 36 cents.

Meanwhile, comparable sales rose 3% after Banana Republic returned to growth during the quarter. Overall, Gap, Banana Republic and Old Navy logged gains of 7%, 4% and 3% in comparable sales, respectively, offsetting a 2% decline from Athleta.

The company said its exposure to tariffs is “minimal.”

“We currently have less than 10% of our product coming from China and less than 1% from Canada and Mexico,” O’Connell said.”

However, we must keep in mind that sales are not growing. Yet.

“Quarterly revenue fell 3.5% to $4.15 billion, but came in ahead of Wall Street expectations for $4.07 billion, according to FactSet.

Looking ahead, Gap said it projects first-quarter sales to be flat to up slightly and full-year sales to rise between 1% and 2%. Analysts polled by FactSet had forecast first-quarter sales to grow around 1.5% and full-year sales to rise around 1.7%.”

Quite impressive. If continued comp sales increases happen, store closures are minimized and sales flip to positive, this is worth a bet despite being range bound for well over a year.