- Shares of Gap rose nearly 15% before market open on August 28 following leadership news
- Michael Francis named President and CEO of Old Navy, starting November 2, 2026
- Francis has extensive experience at Walmart, DreamWorks, JCPenney, and Target
Shares of Gap surged nearly 15% before the opening bell on Friday, August 28 after the retail giant announced leadership changes to its biggest brand, Old Navy and updated annual profit forecast.
Gap appointed Michael Francis as President and CEO of Old Navy, who will take charge from November 2, 2026. Francis will succeed Haio Barbeito, who will transition to an advisory role.
Francis earlier served as strategic advisor to Walmart's c-suite and board for a decade and supported the world's largest retailer in growing nearly $200 billion in revenue.
Following this, he served in marketing and operating roles at DreamWorks Animation and JCPenney, along with a 26-year career at Target, where he held the position of EVP and Chief Marketing Officer for more than a decade. He also previously consulted with Gap Inc. as part of broader portfolio engagement work, the retailer said on Thursday.
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“Old Navy is poised for its next chapter of growth, and Michael is uniquely equipped to step into this operating role," said Richard Dickson, President and CEO of Gap. “Michael is one of the most respected commercial, brand and customer leaders in retail. His experience building iconic brands, cultivating customer connections, and driving transformation at scale will help Old Navy strengthen its relevance, accelerate growth, and deliver even greater value for customers."
Meanwhile, the rally in shares also come after average unit retail price surged across all Gap Inc brands in the quarter, raising the company's adjusted merchandise margin, without including a net benefit linked to the recovery of tariffs. The retail giant's comparable sales rose 10% in the second quarter, eleventh consecutive quarter of growth. Gap increased its adjusted full-year earnings-per-share forecast by 5 cents to $2.35-$2.45.
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