Gap, the iconic brand that helped define American style with its khakis and button downs, has lost its swagger.
For years, the brand has been dragging down its parent company, Gap Inc., which also owns Banana Republic, Old Navy, and Athleta. And today, Gap Inc.’s stock price took a 10% tumble after its most recent earnings report, which showed that the Gap brand has been performing poorly. Sales at Gap stores that have been open for at least a year fell 5%, which was significantly worse than analysts were expecting. On the other hand, Old Navy’s same-store sales jumped by 5%, which is better than analysts had predicted.
Art Peck, Gap Inc.’s CEO, tried to reassure investors in an earnings call, saying he expected to see continued improvement within the Gap brand as the year continues and that Gap’s supply chain would be a key area of focus for the company.
But analysts aren’t so sure. According to Business Insider, a group of Wall Street analysts is asking Gap’s board of directors to rename the company Old Navy, since it is now the strongest performing brand in the stable.