Gap names new Old Navy CEO and lifts profit forecast, shares jump 14%
GAP•Comparable sales were mixed across banners
Gap's namesake brand posted a 10% comparable sales increase in the second quarter, marking its tenth straight quarter of growth. Analysts, on average, expected a rise of 8.8%, according to data compiled by LSEG.
Comparable sales at Old Navy fell 4% in the quarter, compared with a 2% increase a year earlier, while Athleta's comparable sales fell 12% after a 9% decline last year.
"We have work to do at Old Navy, but we have a clear understanding of the factors that impacted performance and are taking targeted actions that are already driving improved results," Dickson said.
Gap's mixed results underscore that "today's more intentional consumer needs a reason to spend on branded discretionary goods," said eMarketer analyst Suzy Davidkhanian.
The Old Navy leadership change signals the company's push to bring the same cultural relevance luring shoppers to Gap to its largest brand, she added.
