Gap gains on Old Navy CEO pick, higher profit forecast
GAP•Mixed brand performance and updated outlook
** Gap brand's comparable sales rose 10% in the second quarter, but Old Navy's fell 4% and Athleta's dropped 12%, highlighting inconsistent performance across the company's banners.
** The company raised its adjusted annual EPS forecast to a range of $2.35 to $2.45 but lowered its fiscal 2026 sales growth outlook to between 1% and 1.5%, citing consumer trends and economic risks.
** Jefferies says "encouraging August trends, raised FY26 EPS guidance, incremental tariff relief, and an upcoming Old Navy leadership transition could support a stronger 2H outlook".
** 10 of 21 brokerages rate the stock "buy" or higher, 11 "hold"; their median PT is $24.2 - LSEG-compiled data.
** As of the last day's close, the stock was down 18.78% year-to-date.
Shares jump after Old Navy CEO appointment and profit beat
** Shares of apparel retailer Gap GAP.N jump 14.02% to $23.7 premarket after the company named a CEO for its Old Navy brand, reported a second-quarter profit beat and raised its annual profit forecast.
** The company appointed industry veteran Michael Francis to reinvigorate its largest and struggling brand, Old Navy, as the broader company's second-quarter profit beat estimates on improved pricing.
