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● TRACKER Updated 17d ago · 9 sources tracked

Gap shares jump 12% after company names new Old Navy CEO to revive struggling brand

Gap shares rose as much as 24.1% to a four-month high after the company appointed industry veteran Michael Francis as CEO of Old Navy. The leadership change aims to revive the struggling brand following a larger-than-expected drop in sales. While the parent company has cut its overall sales outlook due to weakness at Old Navy, Gap simultaneously raised its annual profit forecast, citing the strength of its namesake brand. Market reactions remain positive despite ongoing sales challenges at the value-focused subsidiary.

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  • ✓ Gap shares reached a four-month high, jumping as much as 24.1%.
  • ✓ Michael Francis has been named the new CEO of Old Navy.
  • ✓ Gap increased its annual profit forecast based on the performance of its namesake brand.
  • ✓ Old Navy experienced a larger-than-expected drop in sales.
🛡️ Source Corroboration: 9 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

Gap appointed Michael Francis as Old Navy CEO and raised its annual profit forecast.

Live updates

  1. Gap shares surge as Michael Francis takes over as Old Navy CEO

    Gap shares rose as much as 24.1% to a four-month high after the company appointed industry veteran Michael Francis as CEO of Old Navy. The leadership change aims to revive the struggling brand following a larger-than-expected drop in sales. While the parent company has cut its overall sales outlook due to weakness at Old Navy, Gap simultaneously raised its annual profit forecast, citing the strength of its namesake brand. Market reactions remain positive despite ongoing sales challenges at the value-focused subsidiary.

    Why it matters

    Old Navy is a critical component of Gap's portfolio, but recent sales faltering has forced a strategic reset. The company is balancing these losses with culture-driven marketing, including ads featuring Hailey Bieber, to maintain brand relevance.

    What is confirmed

    • Gap shares reached a four-month high, jumping as much as 24.1%.
    • Michael Francis has been named the new CEO of Old Navy.
    • Gap increased its annual profit forecast based on the performance of its namesake brand.
    • Old Navy experienced a larger-than-expected drop in sales.
    • Gap reduced its sales outlook due to weakness at Old Navy.

    Still unconfirmed

    • Gap's culture-driven ads featuring Hailey Bieber have paid off despite overall sales drops.
    • Gap shares jumped 9% following the CEO announcement.

    What to watch next

    • Quarterly sales reports for Old Navy under Michael Francis's leadership
    • Further updates to the parent company's sales outlook
    • Performance metrics for Gap's culture-driven advertising campaigns
    Sources used for this update (10)
    1. CNBC — Gap shares jump 9% after company names new Old Navy CEO to revive struggling brand
    2. Bloomberg — Gap Replaces Old Navy CEO After Bigger-Than-Expected Sales Drop
    3. WSJ — Gap Cuts Sales Outlook on Old Navy Weakness
    4. ADWEEK — Gap's Bet on Hailey Bieber and Other Culture-Driven Ads Pay Off, Even as Parent Company's Sales Drop
    5. Investing.com — After-Hours Movers: WDAY, ADSK, S, RBRK, MRVL, ULTA, GAP, AFRM
    6. Reuters — Gap lifts annual profit forecast on strength of namesake brand
    7. Retail Dive — Old Navy chief out as sales falter again
    8. Reuters — Gap climbs after leadership change at Old Navy, profit forecast raise
    9. Yahoo Finance — Why Are Gap (GAP) Shares Soaring Today
    10. www.aol.com — Gap climbs after leadership change at Old Navy, profit forecast raise
    confidence 90%
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