Gap taps industry veteran to revive struggling Old Navy brand, shares jump

Live updates

1. 18d ago

   Gap appoints Michael Francis as Old Navy CEO to reverse sales decline

   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 follows a larger-than-expected drop in sales at the brand, which prompted Gap to lower its sales outlook. Despite the weakness at Old Navy, Gap increased its annual profit forecast due to the performance of its namesake brand. Investors reacted positively to the move to revive the struggling label.

   Why it matters

   Old Navy is a key component of Gap's retail portfolio. The brand's recent sales failures have offset gains seen in other areas of the business. This appointment signals a strategic shift to stabilize the company's most volatile segment.

   What is confirmed

   • Gap shares increased by 9%
   • Gap appointed Michael Francis as CEO of Old Navy.
   • Gap raised its annual profit forecast based on the strength of its namesake brand.
   • Old Navy experienced a larger-than-expected drop in sales.

   What to watch next

   • Quarterly sales reports for Old Navy under Michael Francis
   • Further adjustments to Gap's annual sales outlook
   Sources used for this update (6)

   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. Reuters — Gap lifts annual profit forecast on strength of namesake brand
   5. Retail Dive — Old Navy chief out as sales falter again
   6. www.aol.com — Gap climbs after leadership change at Old Navy, profit forecast raise
   confidence 95%