Gap Appoints New CEO for Old Navy to Drive Growth and Improve Performance
Gap has appointed a new CEO for its Old Navy brand, with Michael Francis taking over from current CEO Haio Barbeito. The move is part of a planned transition to drive growth and improve performance at Old Navy. Gap CEO Richard Dickson emphasized that there is no change in strategy, but a focus on executing better and accelerating growth. The company's stock rose 12% following the announcement.
Old Navy reported a decline in net sales and comparable sales in the fiscal second quarter, with a 4% year-over-year drop. This was the first negative same-store sales figure for Old Navy since 2023, attributed to a slowdown in traffic. Despite disappointing summer marketing results, the brand has seen improvements in traffic and sales recently.
Incoming CEO Michael Francis aims to enhance customer focus, strengthen cultural relevance, and improve the overall customer experience at Old Navy. Gap Inc. as a whole reported mixed results for the quarter, with a slight miss on total company performance due to Old Navy's seasonal product assortment. The company adjusted its earnings per share outlook for the full year.
Gap's namesake brand saw a significant increase in comparable sales, while Banana Republic also showed growth in comparable sales. Athleta, on the other hand, experienced a decline in comparable sales but remains focused on rebuilding the brand profitably. Overall, Gap is focused on executing its playbook to drive relevance and revenue across its brands.