Gap Inc. Outlines Strategy to Revive Old Navy Sales
Gap Inc. is implementing a multi-pronged strategy aimed at reversing the recent sales decline of its Old Navy brand following a 4% drop in second-quarter revenue, marking the first downturn in over a decade for the label. The plan includes reworking marketing efforts, resetting pricing to emphasize value, and focusing on key fall categories such as denim, sweaters, knits, and activewear. New CEO Michael Francis is set to lead Old Navy starting November 2026 after joining Gap Inc. earlier this year. The company also plans to expand its product offerings with the launch of Old Navy Sport in select stores and a nationwide rollout of the Old Navy Beauty Co., which includes both private-label products and third-party brands like E.l.f. Cosmetics and Neutrogena. Additionally, $40 million from tariff refunds will be used for promotional activities. Gap Inc.'s CEO Richard Dickson expressed optimism about improved sales trends in Q3 as summer categories lose relevance. Old Navy is also enhancing its sports merchandise through a partnership with Fanatics and leveraging celebrity endorsements like Cardi B's involvement in the 'Most Wanted Denim' campaign to attract more customers.
