Gap Appoints Michael Francis as New Old Navy CEO Amid Profit Beat
Gap Inc (NYSE:GPS) reported better-than-expected second-quarter earnings, driven by strong performance at its Gap brand. The company raised its full-year profit forecast and saw a more than 11% rise in share price following the results. The retailer posted adjusted earnings of $0.52 per share compared to estimates of $0.48, with gross margins expanding slightly to 41.4%. Revenue was reported at $3.7 billion—slightly below last year but close to analyst expectations. While Gap's comparable sales rose by double digits, Old Navy saw a revenue decline and Athleta also posted weaker results. Gap announced the appointment of Michael Francis as President and CEO of Old Navy, succeeding Haio Barbeito. The company emphasized ongoing efforts at Old Navy for improvement while highlighting its potential for future growth.
Topics: financial_results leadership_change retail