The Gap, Inc. has named retail veteran Michael Francis as president and CEO of Old Navy, effective November 2, succeeding Haio Barbeito, who will move into an advisory role. The announcement came alongside second-quarter results showing Old Navy net sales fell 4% year over year to $2.1 billion, with comparable sales down 4% versus analysts' expected 2.4% decline, marking the brand's first negative comp in 12 quarters. Old Navy contributes nearly 60% of Gap's total revenue. CEO Richard Dickson attributed the miss partly to summer marketing that "lacked a direct product message" but said the brand has already seen "significant improvement" in traffic and sales over the past month. Gap's namesake brand posted 10% comparable sales growth in the same quarter, and Gap shares jumped as much as 14% after the report.
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Alphabet Inc Class CThe Gap, Inc.Old Navy sales fell 4% with comps down 4%, missing expectations, though recent improvement noted.
