Gap shares jump 9% after company names new Old Navy CEO to revive struggling brand

Live updates

1. 15d ago

   Gap shares hit four-month high as Michael Francis takes Old Navy helm

   Gap shares rose as much as 24.1% following the appointment of marketing veteran Michael Francis as CEO of Old Navy. The leadership change aims to reverse declines at the denim brand, which contributed to a 2% drop in Gap Inc. second-quarter fiscal 2026 net sales to $3.65 billion. While the Gap brand achieved double-digit growth, three of the company's four brands either stalled or shrank during the quarter, ending a 10-quarter streak of comparable sales growth.

   Why it matters

   Old Navy is a critical revenue driver for Gap Inc., making its recent sales weakness a primary concern for investors. The company is now relying on the growth of its flagship Gap brand to offset losses elsewhere.

   What is confirmed

   • Gap Inc. appointed Michael Francis as the CEO of Old Navy.
   • Gap shares rose as much as 24.1% to a four-month high after the announcement.
   • Second-quarter fiscal 2026 net sales for Gap Inc. fell 2% to $3.65 billion.
   • The Gap brand recorded double-digit growth.

   Still unconfirmed

   • Three of Gap Inc.'s four brands shrank or stalled during the quarter.

   What to watch next

   • Old Navy sales performance under Michael Francis
   • Quarterly comparable sales growth recovery
   Sources used for this update (4)

   1. www.aol.com — Gap climbs after leadership change at Old Navy, profit forecast raise
   2. ouispeakfashion.com — Gap Inc. Sales Fall 2% as Old Navy Prepares for Leadership Change
   3. www.fool.com — Only one brand is really growing
   4. finance.yahoo.com — Gap Stumbles, Elevates Marketing Vet To Old Navy CEO
   confidence 95%
2. 19d ago

   Gap names Michael Francis Old Navy CEO to reverse sales declines

   Gap Inc. appointed industry veteran Michael Francis as the new CEO of Old Navy to revive the struggling brand. The leadership change follows a larger-than-expected drop in sales and a reduced sales outlook for the division. Despite these weaknesses, Gap reported quarterly profits that exceeded estimates. Investors reacted positively to the appointment, with share prices jumping between 9% and 12% following the announcement on Thursday.

   Why it matters

   Old Navy is a key brand for Gap Inc., but recent performance has been marred by sales weakness. The company is now attempting to reinvigorate the brand's image and merchandise strategy. This transition occurs as competitors like Abercrombie have successfully navigated similar image crises.

   What is confirmed

   • Gap named Michael Francis as the new CEO of Old Navy.
   • Gap shares rose between 9% and 12% after the leadership announcement.
   • The appointment follows a bigger-than-expected drop in Old Navy sales.
   • Gap's quarterly profit beat estimates.

   What to watch next

   • Old Navy sales figures under Michael Francis's leadership
   • Gap's updated annual sales outlook for Old Navy
   Sources used for this update (8)

   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. Yahoo! Finance Canada — Gap names Michael Francis Old Navy CEO as quarterly profit beats estimates
   5. PR Newswire — Gap Inc. Announces Leadership Transition at Old Navy
   6. www.aol.com — Gap taps industry veteran to revive struggling Old Navy brand, shares jump
   7. www.forbes.com — Abercrombie Share Rebound Could Show Gap The Playbook Forward
   8. www.briefs.co — Gap Shares Surge 12% Following Old Navy Leadership Change
   confidence 95%