Gap

Gap hired former Paramount executive Pam Kaufman as chief entertainment officer and is expanding branded content and partnerships, including campaigns with emerging bands, to position the brand as a lifestyle and community destination. The company aims to blend retail and entertainment — "fashiontainment" — to boost engagement through exclusive online content and in-store experiences. Experts warn that while IP and experiential strategies can drive attention and larger baskets, compelling content does not automatically translate into sustained sales without strong product, pricing and inventory fundamentals. » More on cnbc.com

Gap Inc. presented a phased transformation at the Goldman Sachs conference: the Gap brand posted eleven consecutive quarters of growth with high customer engagement, improved pricing and margin gains. Old Navy suffered a same-store sales decline in the first half due to seasonal assortment issues; management says the cause has been fixed and plans a realignment, including Michael Francis as new CEO starting Nov. 2. The company is expanding new categories (beauty, accessories, licensing) and a "fashiontainment" concept while maintaining financial discipline, and expects long-term low-single-digit core business growth plus additional growth from the new areas. » More on de.investing.com

Gap appointed retail veteran Michael Francis as president and CEO of Old Navy effective November 2, replacing Haio Barbeito who will become an adviser. Old Navy reported Q2 net sales down 4% year‑over‑year and comparable sales down 4%, its first negative comp in 12 quarters, and accounts for about 60% of Gap's revenue. Despite the Old Navy miss, Gap's overall operating and net income more than doubled and the namesake brand saw double-digit comp growth; management narrowed full‑year sales guidance to 1–1.5% due to Old Navy's weakness. » More on finance.yahoo.com

Gap will launch a handbag collection designed by Reed Krakoff on Sept. 8, with prices ranging from $29.95 to $148 and a limited patchwork model priced at $498. The line, including the Five-Pocket Tote and the washable Hoodie Tote, uses specially developed fabrics and was partially designed with the help of artificial intelligence. Gap management sees accessories as a growth driver and aims to differentiate its assortment with Krakoff. The announcement weighed on Tapestry in pre-market trading on the NYSE, as Gap could challenge market share in the affordable-luxury segment. » More on de.investing.com

Gap reported Q2 net sales down 2% while adjusted gross margin improved and Gap brand comps rose 10%. Old Navy comps fell 4% due to weak women's summer seasonal assortment and lower traffic, Athleta comps declined 12%, and Banana Republic comps increased 3%. Management narrowed full-year revenue guidance to +1.0%–1.5%, raised adjusted operating margin and now expects adjusted EPS of $2.35–$2.45, and announced $600m of buybacks year-to-date plus ongoing dividends. Michael Francis will become Old Navy president and CEO effective Nov. 2 as the company accelerates merchandising and marketing actions for the back half. » More on finance.yahoo.com