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Gap Names Michael Francis CEO of Old Navy

8/28/2026

34 8 Full Breakdown

Summary

Story summary

Gap Inc. appointed Michael Francis as CEO of Old Navy, effective Nov. 2.
Gap shares rose 15% in extended trading after the leadership change.
Old Navy reported Q2 net sales of $2.1 billion, with comparable sales down 4% YoY, its first decline since Q2 2023.
Gap raised its full-year adjusted EPS outlook to $2.35-$2.45.
Gap recorded a $417 million net tariff recovery, including $95 million received in the quarter.

History

Historical Context

When NAFTA took effect on Jan 1 1994, it eliminated most tariffs among the United States, Canada and Mexico, boosting U.S. trade to $1.2 trillion by 2011 and adding roughly $80 billion to the U.S. economy. Decades later, Gap Inc. tapped Michael Francis as Old Navy CEO and secured a $417 million tariff-recovery claim, echoing the profit lifts retailers saw after the 1994 tariff cuts.

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Story summary

Gap Inc. appointed Michael Francis as CEO of Old Navy, effective Nov. 2.
Gap shares rose 15% in extended trading after the leadership change.
Old Navy reported Q2 net sales of $2.1 billion, with comparable sales down 4% YoY, its first decline since Q2 2023.
Gap raised its full-year adjusted EPS outlook to $2.35-$2.45.
Gap recorded a $417 million net tariff recovery, including $95 million received in the quarter.

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