Gap’s Old Navy Chain Keeps Retailer’s Turnaround Hopes Alive

SAN FRANCISCO, United States — Gap Inc.’s investors are pinning their hopes for a turnaround on strong sales at Old Navy.

The largest US apparel-focused retailer posted second-quarter earnings that topped analysts’ estimates as revenue grew at Old Navy, the company’s lower-priced chain. That drove the stock up as much as 16 percent in late trading Thursday.

The results indicate that Chief Executive Officer Art Peck’s comeback plan is taking hold. He has invested in technology, marketing and on-trend styles like athletic apparel. That’s helped him contend with sluggish mall traffic and fierce competition from fast-fashion retailers like H&M and…
The Business of Fashion

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