Old Navy Gets New CEO as Gap Inc. Bets Its Turnaround on the Brand That Drives 60% of Revenue

Quick Facts

Gap Inc. named Michael Francis as Old Navy CEO, effective November 2, 2026, replacing Haio Barbeito.
Old Navy posted a 4% comparable sales decline in Q2 FY2026, while the Gap brand surged 10% in comps.
Old Navy generates more than $8.7 billion in annual revenue, representing nearly 60% of Gap Inc.’s total sales.

Gap Inc. has a turnaround story at its flagship brand. Now it needs one at Old Navy.

On August 27, 2026, the San Francisco-based retailer announced Michael Francis as President and CEO of Old Navy, effective November 2. He replaces Haio Barbeito, who moves into an advisory role.

Gap shares jumped roughly 14% in premarket trading following the announcement.

Who Is Michael Francis

Francis joined Gap Inc. in March 2026 as Chief Customer Officer at Old Navy and Head of Marketing Shared Services. His resume spans more than four decades in consumer retail.

He served as President of JCPenney, Chief Marketing Officer at Target, and Chief Global Brand Officer at DreamWorks Animation. He also spent a decade as a strategic advisor to Walmart’s C-suite and board, a period during which the retailer grew nearly $200 billion in revenue while expanding its e-commerce, membership, and advertising businesses.

Francis said the brand would “continue to sharpen our customer focus, strengthen the brand’s cultural relevance, enhance the customer experience across every touchpoint and build on the momentum already underway.”

The Problem Francis Inherits

Old Navy is Gap Inc.’s largest asset. The brand generated $8.7 billion in net sales last year and operates more than 1,200 stores across the United States and Canada. It has contributed nearly 60% of Gap Inc.’s total revenue.

But the brand stumbled in the second quarter of fiscal 2026. Old Navy net sales fell 4% to $2.1 billion, with comparable sales down 4%. Gap Inc. CEO Richard Dickson attributed the miss to a weak seasonal assortment and a marketing campaign that failed to land.

“We didn’t execute well on our seasonal assortment,” Dickson said. “The categories that really represented the challenge were swim, shorts, and dresses.” He added that Old Navy’s summer marketing “lacked a direct product message.”

Dickson said sales improved in August as fall product arrived and noted the company is “in a much better place from a product point of view” entering the third quarter.

The Gap Brand Contrast

The divergence between Old Navy and Gap’s namesake brand sharpens the urgency. The Gap brand posted Q2 net sales of $844 million, up 9%, with comparable sales climbing 10%. Banana Republic grew comps 3%. Athleta continued to struggle, with net and comparable sales each falling 12% to $264 million.

For fiscal year 2025, Gap Inc. recorded net sales growth of 2%, comparable sales growth of 3%, operating income of $1.1 billion, and operating margin of 7.3%. Operating cash flow reached $1.3 billion.

In Q2 FY2026, operating income more than doubled to $676 million from $292 million a year earlier. Net income rose to $501 million, or $1.38 per diluted share, compared to $216 million, or 57 cents per diluted share, in the prior-year period.

Revised Outlook

Gap Inc. trimmed its full-year 2026 net sales forecast to growth of 1% to 1.5%, down from a prior range of 1% to 2%. The company raised its earnings per diluted share outlook to $2.35 to $2.45, up from $2.30 to $2.40.

Dickson described the leadership transition as “planned and thoughtful” and said strategy at Old Navy is not changing. “We’ve been working from fixing fundamentals to building momentum and ultimately looking to accelerate growth,” he said.

The math is straightforward. If Old Navy cannot return to growth, Gap Inc.’s broader recovery stalls. Francis now owns that problem.