Gap Names Michael Francis as Old Navy CEO to Reverse Sales Decline

Gap Inc. announced a leadership change at its largest brand, Old Navy, on Thursday, August 27, naming retail veteran Michael Francis as its next president and CEO. The move comes as the company seeks to reverse a sales decline and reinvigorate the brand's performance. Francis, who joined Gap Inc. in March as chief customer officer for Old Navy, will assume the role on November 2, succeeding Haio Barbeito, who will transition to an advisory position. The leadership transition follows a challenging second quarter for Old Navy. For the period ended August 1, the brand reported a 4 percent drop in comparable sales, its first decline in 11 quarters. Net sales for Old Navy fell to $2.1 billion. Gap Inc. CEO Richard Dickson attributed the underperformance to mispriced assortments in seasonal categories like dresses and swimwear, alongside marketing that failed to drive sufficient store traffic. "What we did not anticipate was the degree to which our marketing would fall short in driving traffic," Dickson told analysts. In response, Old Navy has implemented a multi-point turnaround plan.