Gap Inc (NYSE:GPS) raised its full-year profit forecast after posting better-than-expected quarterly earnings, driven by strong sales growth at its namesake brand, sending shares up more than 11%. The retailer reported second-quarter adjusted earnings of $0.52 per share, topping analyst estimates of $0.48, as gross margins expanded 20 basis points to 41.4%.
The apparel company is shaking up leadership at Old Navy, bringing in Michael Francis, a retail veteran with experience at Walmart and Target, as chief executive of the brand to try to boost sales.
Apparel retailer Gap raised its annual profit forecast on Thursday, betting on sustained momentum at its namesake brand even as pressure at some of its other labels persists.
Gap announced a new CEO for Old Navy on Thursday as the brand reported a decline in comparable sales for the most recent quarter. Michael Francis will take the reins of Old Navy beginning Nov. 2.
Net sales down 2% compared to last year; comparable sales down 1% Exceeded reported and adjusted operating margin expectations Returned $726 million to shareholders through share repurchases and dividends year-to-date Provides updated outlook for full year while raising earnings per share outlook Company separately announces Michael Francis as Old Navy's next President and CEO, succeeding Haio...
SAN FRANCISCO, Aug. 27, 2026 /PRNewswire/ -- Gap Inc. (NYSE: GAP) today announced the appointment of Michael Francis as President and Chief Executive Officer of Old Navy, effective November 2, 2026. Francis will succeed Haio Barbeito, who will transition from his operating role into an advisory capacity.
Gap reports earnings Thursday after disappointing results sent its stock tumbling, but lowered expectations could give the retailer an opportunity to turn things around.