Gap Names Michael Francis Old Navy CEO After Sales Decline
Gap Inc. appointed retail veteran Michael Francis as Old Navy CEO, replacing Haio Barbeito, after Old Navy reported a 4% drop in comparable sales for Q2 2024, its first decline since 2023. Overall Gap revenue fell 2% to $3.65 billion, missing estimates, though adjusted earnings beat expectations. The company narrowed its full-year sales growth outlook to 1%-1.5% but raised EPS guidance. Gap brand saw 10% sales growth, while Athleta declined 12%. Shares rose over 11% on the news.
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Gap Inc. Soars 12.9% on Q2 Profits, New Old Navy CEO; More Hedge Funds Buy In
Gap Inc. (NYSE:GAP) saw its stock surge 12.94% on August 28, 2026, closing at $23.48, following the announcement of Michael Francis as the new CEO of Old Navy, effective November 2, 2026. Francis, who previously served as a strategic advisor to Walmart, will succeed Haio Barbeito. The rally was also driven by strong Q2 earnings, with net income more than doubling to $501 million from $216 million year-over-year, despite a 2% decline in net sales to $3.65 billion. The company declared a Q3 dividend of $0.175 per share. Analysts from UBS, TD Cowen, Wells Fargo, and Morgan Stanley raised price targets. Hedge fund interest increased, with 36 funds holding positions in Q2, up from 31 in Q1, though total committed capital fell 16% to $647.7 million, indicating cautious optimism.
Gap cuts full-year sales outlook after Old Navy Q2 miss
Gap Inc. lowered its full-year net sales growth forecast to 1%-1.5% from 1%-2% after its largest brand, Old Navy, reported a steeper-than-expected 4% decline in second-quarter comparable sales. CEO Richard Dickson attributed the weakness to a poor women's seasonal assortment and marketing shortcomings that led to a slowdown in store traffic. Overall, Gap reported Q2 net sales of $3.65 billion, down 2% year-over-year, with comparable sales down 1%. Net income rose to $501 million ($1.38 per diluted share) from $216 million ($0.57) a year earlier, boosted by tariff refunds. Adjusted EPS of $0.52 beat analyst expectations of $0.48. The company raised its full-year adjusted EPS target to $2.35-$2.45. Other brands partially offset Old Navy's struggles: Gap brand sales rose 9%, Banana Republic sales rose 1%, while Athleta sales fell 12%. Gap also announced Michael Francis will become Old Navy's president and CEO effective Nov. 2, replacing Haio Barbeito. Gap stock rose 15% in after-hours trading.
Gap shares rise after Q2 earnings beat and higher full-year guidance
Gap Inc. shares rose over 13% in pre-market trading after reporting Q2 adjusted earnings per share of $0.52, beating the consensus estimate of $0.49. Revenue was $3.7 billion, flat year-over-year. The company raised its full-year adjusted EPS guidance to $2.35-$2.45 from $2.30-$2.40. Comparable sales fell 1% overall, with Gap brand up 10% but Old Navy down 4%. Adjusted operating margin reached 7.1%, and gross margin improved 20 basis points to 41.4%. CEO Richard Dickson cited operational rigor for profit outperformance. Gap narrowed its full-year sales growth forecast to 1%-1.5% and raised operating margin guidance to 7.4%-7.6%. Bank of America maintained a Neutral rating, citing concerns about Old Navy's lower-end customer amid macro pressures. Gap returned $726 million to shareholders year-to-date and ended the quarter with $2.5 billion in cash.
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Gap Appoints Retail Veteran to Lead Old Navy After Sales Decline
Gap Inc. has appointed a retail industry veteran as the new head of its Old Navy brand following a deeper-than-expected sales decline at the chain. The poor performance at Old Navy, Gap's largest brand by revenue, forced the parent company to lower its full-year financial guidance. The leadership change aims to stabilize the brand and reverse its sales slump. The new executive brings extensive experience in the retail sector to address operational challenges and improve customer engagement. The announcement underscores ongoing struggles at Gap's key divisions amid shifting consumer preferences and competitive pressures in the apparel market.
Gap Inc. Sales Slip in Q2, Old Navy Has Change in Command
Gap Inc. reported a 2% decline in Q2 sales to $3.65 billion, ending a streak of 10 consecutive quarters of gains, driven by fashion misses at Old Navy. Old Navy CEO Haio Barbeito will transition to an advisory role, succeeded by Michael Francis, former Target CMO. Despite the sales slip, operating income more than doubled to $676 million and net income rose to $501 million. The company revised its 2026 sales growth forecast downward to 1%-1.5% but raised earnings per share guidance. Old Navy sales fell 4% to $2.1 billion, while Gap brand sales rose 9%. Athleta saw a 12% sales drop. CEO Richard Dickson attributed the Old Navy weakness to poor execution in seasonal categories like swim, shorts, and dresses, but noted improvement in August. The stock rose over 11% in after-hours trading.
Gap Names Michael Francis Old Navy CEO as Quarterly Profit Beats Estimates
Gap Inc reported second-quarter adjusted earnings of $0.52 per share, beating analyst estimates of $0.48, driven by strong sales at its namesake brand. Revenue was $3.7 billion, roughly in line with expectations but down 2% year-over-year. Comparable sales at Gap brand rose 10%, while Old Navy revenue fell 4% to $2.1 billion. The company raised its full-year adjusted earnings guidance to $2.35-$2.45 per share, above analyst estimates. Gap also announced Michael Francis will become President and CEO of Old Navy, succeeding Haio Barbeito. CEO Richard Dickson cited operational rigor for margin strength and noted targeted actions are improving Old Navy's results. Shares rose over 11% on the news.
Gap announces new Old Navy CEO following sluggish quarterly sales
Gap Inc. announced on Thursday that Michael Francis will become the new CEO of its Old Navy brand, effective November 2, replacing Haio Barbeito who will stay on as an advisor. The leadership change comes as Old Navy reported a 4% decline in comparable sales for the fiscal second quarter, its first negative same-store sales figure since Q2 2023, missing Wall Street expectations of a 2.4% decline. Gap CEO Richard Dickson described the transition as planned and said the strategy remains unchanged. Overall, Gap Inc. reported mixed quarterly results: adjusted earnings per share of $0.52 beat estimates of $0.48, but revenue of $3.65 billion fell short of the $3.69 billion expected. The company narrowed its full-year net sales growth outlook to 1%-1.5% due to Old Navy's underperformance, while raising its adjusted EPS forecast to $2.35-$2.45. The Gap namesake banner performed well with 10% comparable sales growth.