Gap Inc to retain name after Old Navy spin-off
US specialty apparel retailer Gap Inc will retain its name following the completion of the planned spin-off of Old Navy into an independent, publicly-traded company.
The split, which was first announced in March, will see Old Navy become a standalone company while the group's remaining Gap, Athleta, Banana Republic, Intermix and Hill City labels will operate under the "new" Gap Inc (currently referred to as NewCo).
The spin-off, Gap said earlier this year, will enable each company to maximise focus and flexibility, align investments and incentives to meet its unique business needs, and optimise its cost structure to deliver profitable growth. CEO Art Peck says the "credibility and reputation the company has built with the Gap Inc name transcends any individual brand."
He adds: "Our brands remain a cultural cornerstone with global relevance. I am optimistic and excited about the future of the new Gap Inc. Our focus will be on delivering quality revenue growth, and accelerating profitability and cash flow, while positively impacting our employees, our shareholders, the communities in which we do business, and our planet."
Old Navy will continue to operate under its current name when it becomes a standalone, publicly-traded company. As previously announced, Sonia Syngal – who has led Old Navy since 2016 – will continue as the CEO of Old Navy and Peck will be CEO of the new Gap Inc.
Last week, the retailer reported another fall in comparable sales for the second quarter with negative results across nearly all segments of the business – and said it continues to closely monitor tariff discussions with contingency plans in place ahead of the upcoming List 4 tariffs on US imports from China.