Gap shares jump 9% after company names new Old Navy CEO to revive struggling brand

Gap shares jumped 9% Thursday after the company named Michael Francis as CEO of Old Navy, effective November 2. The leadership change comes as the banner reported a decline in comparable sales for the most recent quarter, underscoring the urgency of the turnaround effort at Gap's largest brand by revenue.

Francis takes the helm as Old Navy struggles to regain momentum after pandemic-era gains faded. The brand has been a persistent drag on Gap's overall performance, with the parent company banking on new leadership to reverse the slide. Gap did not disclose Francis's previous role or specific turnaround strategies in the announcement.

The 9% share-price surge reflects investor optimism that fresh management can stabilize Old Navy's sales trajectory. The appointment arrives alongside the disappointing comparable-sales print, creating a clear before-and-after milestone for Francis's tenure.

Gap has cycled through strategies to reinvigorate Old Navy, including pricing adjustments and merchandising overhauls, with mixed results. The CEO change signals the company is betting on leadership as the critical variable.