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Michael Francis to become the new CEO of Old Navy as Gap Inc. reports mixed second-quarter results

Gap Inc. announced a new CEO for its Old Navy banner, Michael Francis, who will take over the reins from Haio Barbeito on Nov. 2. The move follows a period of lagging sales performance at the brand, which contributes nearly 60% of the company's overall revenue. Old Navy reported a 4% year-over-year decline in net sales, attributed to an unanticipated slowdown in traffic and a summer marketing campaign that lacked a direct product message. In contrast, the namesake Gap brand has emerged as the company's lead success story, reporting a 10% surge in comparable sales. CEO Richard Dickson noted that the brand's cultural relevance and successful collaborations, such as a 90s-themed partnership with Hailey Bieber, have driven significant growth. While Old Navy faces a turnaround, the company also reported mixed results for Athleta, which saw a 12% decline in comparable sales. Despite the Old Navy drag, the administration announced a narrowed net sales growth outlook for the full year, while simultaneously hiking its expectations for adjusted earnings per share.

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