Old Navy Launches Sport Subbrand to Win the Activewear Market

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9.16.2026

Quick Facts

Old Navy Sport launched Sept. 15, 2026, spanning OldNavy.com, the app, all stores, and 42 shop-in-shop locations with potential freestanding stores ahead.
Old Navy ranks No. 5 in the U.S. active market per Circana, with activewear prices ranging from $8 to $70.
Old Navy’s Q2 2026 net and comparable sales fell 4% to $2.1 billion, making the subbrand launch a key part of Gap Inc.’s recovery plan.

Old Navy is making its most focused push into activewear yet. The Gap Inc. brand announced Old Navy Sport on Sept. 15, 2026, a dedicated subbrand that consolidates all of its active products under one label and identity.

Every piece of Old Navy activewear will carry the Old Navy Sport name going forward. The subbrand is live on OldNavy.com, the Old Navy app, and in stores nationwide, supported by a new @OldNavySport social media handle.

Shop-in-Shop and Potential Standalone Stores

Forty-two of Old Navy’s roughly 1,250 stores will feature immersive shop-in-shop environments built around the new brand. The company is already considering freestanding Old Navy Sport locations, though no timeline has been announced.

The launch includes more than 300 new SKUs. Proprietary fabric technologies anchor the line, including PowerSoft, PowerSoft Boundless leggings, StudioSmooth for yoga and Pilates, and Bounce Fleece.

A Response to a Down Quarter

The timing is deliberate. Old Navy’s Q2 2026 comparable and net sales dropped 4% to $2.1 billion, the brand’s first negative quarter in six quarters. Old Navy accounts for 58% of Gap Inc.’s total revenues, so its performance drives results across the parent company.

Gap Inc. CEO Richard Dickson called Q2 a “mixed quarter,” noting that profit expectations were exceeded even as top-line results slipped. “On the active front, we’re launching Old Navy Sport in mid-September,” he said.

Gap Inc.’s Q2 operating income more than doubled to $676 million from $292 million a year prior. The company raised its 2026 earnings per diluted share outlook to $2.35 to $2.45 and expects Q3 sales to grow 1.5% to 2.5% year over year.

Room to Grow in a Crowded Market

Old Navy enters the push ranked fifth in U.S. activewear per Circana, trailing Walmart, Target, Lululemon, and Nike. The global activewear market was valued at $440.4 billion in 2025 and is projected to reach $920 billion by 2033, growing at a 9% annual rate.

Old Navy VP of Merchandising Jessica Shynn said the brand is testing price points above and below its current range while maintaining its value positioning. “We want to understand and read customer sentiment as it shows up a little differently, but still staying super competitive,” she said.

Athleta Overlap and Brand Positioning

Old Navy Sport sits inside the same corporate parent as Athleta, Gap Inc.’s premium activewear brand. Shynn said the two brands serve distinct customers at different price points and with different creative identities. “Knowing how massive and ever-growing the activewear space is, there’s definitely still room for both of us to grow,” she said.

Outgoing Old Navy President and CEO Horacio Barbeito framed the launch as part of a broader strategy to give more resources to fast-growing categories. Old Navy’s turnaround plan also includes a reset on pricing, a push into fall denim and knitwear, and new beauty merchandise.

Incoming CEO Michael Francis has already shaped the brand’s product storytelling and marketing execution, according to Dickson. The full impact of that leadership transition will become clearer when Gap Inc. reports Q3 results.