CNBC and Reuters reported that The Gap, Inc. (NYSE:GAP) 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 ******* ysts' 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 ******* son 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.
Northfoto / Shutterstock.com
Overall profitability far exceeded what the sales headline suggests since operating income more than doubled to $676 million from $292 million a year earlier, while net income more than doubled to $501 million from $216 million. These results show that Gap can significantly improve earnings even while Old Navy struggles.
The turnaround playbook is clearly working where it has been fully applied. The Gap, Inc. (NYSE:GAP)'s namesake brand delivered double-digit comparable sales growth this quarter. It shows that CEO ******* son's broader strategy can succeed decisively when executed well, which strengthens confidence that it can eventually be applied successfully to fix Old Navy too.
#sales #million #quarter #NYSE
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 ******* ysts' 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 ******* son 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.
Northfoto / Shutterstock.com
Overall profitability far exceeded what the sales headline suggests since operating income more than doubled to $676 million from $292 million a year earlier, while net income more than doubled to $501 million from $216 million. These results show that Gap can significantly improve earnings even while Old Navy struggles.
The turnaround playbook is clearly working where it has been fully applied. The Gap, Inc. (NYSE:GAP)'s namesake brand delivered double-digit comparable sales growth this quarter. It shows that CEO ******* son's broader strategy can succeed decisively when executed well, which strengthens confidence that it can eventually be applied successfully to fix Old Navy too.
#sales #million #quarter #NYSE
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