Gap

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