Gap

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