Gap shares jump 12% after company names new Old Navy CEO to revive struggling brand
Gap announced a new CEO for Old Navy on Thursday as the brand reported a decline in comparable sales for the most recent quarter.
TL;DR
- Michael Francis appointed new CEO of Old Navy, replacing Haio Barbeito.
- Old Navy reported a 4% year-over-year decline in net sales and comparable sales in the fiscal second quarter.
- Gap's shares increased by 12% in extended trading following the CEO announcement and earnings report.
- The namesake Gap brand saw comparable sales soar 10%, while Banana Republic's comparable sales were up 3%.
- Athleta's comparable sales sank 12% for the quarter.
- Gap narrowed its full-year net sales growth outlook but raised its adjusted earnings per share expectations.
- The company reported strong net income, partly due to tariff refunds totaling $95 million in the quarter.