The Gap (GAP) reported better-than-expected second quarter results. The earnings were supposed to be released after the market close on Thursday, but had accidentally been posted earlier in the day.

Morningstar equity analyst David Swartz describes the quarter as "pretty good," with a strong gross margin. He tells Market Domination Overtime that apparel companies' margins are benefiting from a decline in shipping and raw materials costs.

When asked to grade the performance of new CEO Richard Dickson, who has been leading the company for about a year, Swartz gives him an A+. However, he caveats it by saying the company had been "mismanaged for about 20 years." "Right now, there's a lot of enthusiasm with Gap... we've seen a very rapid turnaround," he adds.

Click here to watch what Swartz says about Lululemon's (LULU) results.

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This post was written by Stephanie Mikulich.