Gap gains on Old Navy CEO pick, higher profit forecast

The Gap

28/08/2026 09:17

** Shares of apparel retailer Gap GAP.N jump 14.02% to $23.7 premarket after co named a CEO for its Old Navy brand, reported a Q2 profit beat and raised its annual profit forecast
** Co appointed industry veteran Michael Francis to reinvigorate its largest and struggling brand, Old Navy, as the broader co's Q2 profit beat estimates on improved pricing
** Gap brand's comparable sales rose 10% in Q2, but Old Navy's fell 4% and Athleta's dropped 12%, highlighting inconsistent performance across the co's banners
     ** Co raised its adjusted annual EPS forecast to a range of $2.35 to $2.45 but lowered its fiscal 2026 sales growth outlook to between 1% and 1.5%, citing consumer trends and economic risks
** Jefferies says "encouraging August trends, raised FY26 EPS guidance, incremental tariff relief, and an upcoming Old Navy leadership transition could support a stronger 2H outlook"
** 10 of 21 brokerages rate the stock "buy" or higher, 11 "hold"; their median PT is $24.2 - LSEG-compiled data
** As of last day's close, stock down 18.78% YTD


 (Reporting by Kanishka Ajmera in Bengaluru)
 ((mail to: Kanishka.Ajmera@thomsonreuters.com))