The Gap-Old Navy Divide
When Old Navy sets sail and splits from Gap Inc. this year, it will be into uncharted territory for both companies. The separation, first laid out in February, was pitched as a way to let the two sides thrive under corporate structures dedicated to ensuring their growth and success. But the subtext was that Old Navy was on a roll and being held back, especially by Gap and Banana Republic, and that separating the two would let the Old Navy stock soar. Investors liked the idea, but doubts started to surface as Old Navy’s growth slowed with comparable sales dropping 4 percent in the third quarter following a 4 percent increase a year earlier. And Art Peck was ousted in November, muddling the picture. He was chief executive officer of the company and was slated to continue leading Gap, Banana Republic, Athleta and Hill City after the split. Robert J. Fisher, who is son of Gap founder Donald Fisher and serving as interim president and ceo, said the split would go on. “The board and I continue to believe in the strategic rationale of the separation,” Fisher said headed into the key holiday season. “As we move forward with the (separation) work, we remain confident inFollow WWD on Twitter or become a fan on Facebook.
from WWDWWD https://ift.tt/37F1vLh
0 comments:
Post a Comment