Gap Inc. is putting an experienced retail executive in charge of Old Navy as its biggest brand struggles to keep shoppers spending. Michael Francis will become president and chief executive officer of Old Navy, tasked with restoring momentum after a disappointing sales quarter.
The appointment arrives at an important moment for Gap Inc. Chief Executive Richard Dickson has spent the past few years rebuilding the company’s brands, improving products, and sharpening its marketing. Old Navy now stands out as the part of the business that needs the most attention.
Investors liked the leadership change. Gap shares climbed sharply following the announcement, with reports putting the gain at roughly 12 percent to 14 percent across after-hours and premarket trading.
Michael Francis Takes Charge as Old Navy Sales Slip
Gap Inc. has described the change as “carefully planned” rather than a sudden response to one bad quarter. Still, the timing makes the reason for urgency easy to understand because Old Navy has lost some of the momentum it built during the company’s wider turnaround.
Old Navy comparable sales fell 4 percent during Gap Inc.’s fiscal second quarter of 2026. The decline marked the brand’s first negative comparable sales quarter in 11 periods, ending a long stretch of positive results.
Weakness in some women’s apparel categories hurt performance, while softer customer traffic added more pressure. Those problems matter because Old Navy is Gap Inc.’s largest brand and plays a major role in the parent company’s overall revenue.
The slowdown also pushed Gap Inc. to become more cautious about the rest of the year. The company lowered its full-year revenue growth forecast to between 1% and 1.5%, compared with an earlier outlook that allowed for growth as high as 2%.
Other parts of the company have shown better momentum. The Gap brand has benefited from stronger cultural relevance and more focused marketing, while Banana Republic has also delivered encouraging signs.
Francis Brings Years of Target and Walmart Experience
Target became closely associated with accessible design during that period. Francis played an important role in marketing a retailer that could sell everyday basics while still making fashion and design feel exciting to mainstream shoppers.
That experience could prove especially useful at Old Navy. The brand competes in a crowded part of the apparel market where shoppers want affordable prices but still expect clothes to feel current and distinctive.
Old Navy cannot rely on low prices alone. It needs products that catch attention quickly, marketing that gives customers a reason to visit, and basic clothing that shoppers trust enough to buy repeatedly. Francis also spent years advising Walmart, giving him experience with another retail giant built around scale and value. His work there exposed him to a different type of customer and another massive retail operation.
Richard Dickson has called the leadership transition “planned and thoughtful,” and the wording reflects Gap Inc.’s broader strategy. The company is trying to build durable brands rather than chase a temporary sales boost.
Dickson took over as Gap Inc. CEO in 2023 and has pushed each brand to develop a clearer identity. Marketing has become more culturally focused, while product teams have placed greater attention on categories that customers already connect with each label.
