Gap Inc. Stock Skyrockets as Old Navy Appoints Industry Veteran Michael Francis as CEO
Gap Inc. saw a dramatic 18% surge in premarket trading on Friday, following the announcement of Michael Francis as the new President and CEO of its Old Navy brand. Francis, who has been with Gap Inc. since March 2026 as Old Navy’s Chief Customer Officer, is set to officially assume his new role on November 2, 2026. He will be succeeding the outgoing CEO Haio Barbeito, who will be moving into an advisory role.
This change in leadership comes at a time when Old Navy is striving to regain its momentum. The brand reported a disappointing 4% decline in comparable sales for the fiscal second quarter ending August 2026. The net sales for this period were $2.1 billion, falling short of the anticipated 2.4% decline. Gap Inc., on the other hand, reported a revenue of $3.65 billion for the quarter, which was slightly below the estimated figures. However, the adjusted earnings per share of 52 cents exceeded Wall Street’s predictions.
Francis brings with him over four decades of retail and marketing experience. His illustrious career includes a decade of advising Walmart’s C-suite and board, and a 26-year stint at Target where he served as EVP and Chief Marketing Officer. Gap CEO Richard Dickson described the transition as “a planned and thoughtful” move. Francis is expected to focus on enhancing Old Navy’s marketing strategies, improving its omnichannel experience, and deepening its relationship with families. In contrast, the Gap namesake brand has been showing strong momentum with its 10th consecutive quarter of comparable sales growth, marking a 10% increase year over year.
Source: CNBC – August 28, 2026