What Happened to Old Navy?
Old Navy, a prominent American clothing and accessories retailer, remains a key division of Gap Inc., known for its affordable family fashion. After experiencing rapid growth in its early years and a canceled spin-off attempt in 2020, the brand has recently faced sales challenges, leading to a leadership change and a renewed strategic focus on denim and marketing initiatives in 2026.
Quick Answer
Old Navy is still a major apparel retailer and a core brand under Gap Inc. As of September 2026, the company is undergoing a strategic refresh following recent sales declines, particularly in its women's seasonal assortments. Michael Francis was appointed as the new President and CEO, effective November 2, 2026, tasked with strengthening brand storytelling, enhancing customer experience, and accelerating growth. Old Navy is currently emphasizing denim as a key category and expanding its beauty offerings nationwide.
📊Key Facts
📅Complete Timeline15 events
Old Navy Founded
Gap Warehouse is rebranded as Old Navy Clothing Co., opening its first stores in California as a value-focused apparel retailer.
Reaches $1 Billion in Sales
Old Navy becomes the first retailer to achieve $1 billion in annual sales within its first four years of operation.
International Expansion to Canada
Old Navy begins its international expansion with the opening of 12 stores in Ontario, Canada.
Launches Project ONE Rebranding and Activewear
Old Navy begins a second rebranding, Project ONE, focusing on a family-oriented environment, and launches its 'Old Navy Active' line.
OldNavy.com Hits $1 Billion in Sales
The brand's e-commerce platform, OldNavy.com, reaches $1 billion in annual sales, highlighting its growing digital presence.
Gap Inc. Announces Old Navy Spin-Off Plan
Gap Inc. announces its intention to spin off Old Navy into an independent, publicly traded company.
Old Navy Spin-Off Canceled
Gap Inc. reverses its decision to spin off Old Navy, citing 'cost and complexity' and 'softer business performance.'
Launches BODEQUALITY
Old Navy introduces BODEQUALITY, a size-inclusive initiative offering all women's styles in sizes 0-30 with no price difference.
Eliminates Plastic Shopping Bags
Old Navy eliminates plastic shopping bags in its U.S. and Canada stores as part of its sustainability commitments.
Plans to Sell Personal Care Products
Gap Inc. announces its intention to sell personal care products and cosmetics at Old Navy stores, signaling an expansion into new categories.
Reports Q1 2026 Results
Old Navy reports Q1 2026 net sales up 1% to $2.0 billion, with comparable sales also up 1%, but notes 'fashion misses' in seasonal categories.
Launches Cardi B Denim Campaign
Old Navy launches its 'Most Wanted Denim' fall campaign featuring Cardi B and other influencers, which quickly becomes its most-viewed campaign.
Old Navy Beauty Co. Launches
Old Navy Beauty Co. launches nationwide and online, expanding the brand's offerings into personal care and cosmetics.
Q2 2026 Results & New CEO Announcement
Old Navy reports Q2 2026 net sales down 4% to $2.1 billion and comparable sales down 4%. Gap Inc. announces Michael Francis as the new President and CEO of Old Navy, effective November 2, 2026, succeeding Haio Barbeito.
Rewires Marketing Strategy
Following disappointing Q2 results, Old Navy 'rewires' its marketing strategy to focus heavily on denim and customer engagement, including collaborations with creators like MrBeast.
Follow this story
Get an email when this timeline gets a major update.
🔍Deep Dive Analysis
Old Navy was founded in 1994 by Gap Inc. as a value-oriented alternative to its flagship Gap brand, quickly distinguishing itself with affordable, family-friendly fashion. It achieved remarkable success, becoming the first retailer to reach $1 billion in sales within its first four years by 1997. The brand expanded internationally into Canada in 2001 and continued to grow its physical footprint and online presence, with OldNavy.com hitting $1 billion in sales by 2015.
A significant turning point occurred in February 2019 when Gap Inc. announced plans to spin off Old Navy into an independent public company, aiming to allow each entity to pursue distinct growth strategies. However, this plan was ultimately canceled in January 2020, with Gap Inc. citing the 'cost and complexity' of the separation and 'softer business performance' as reasons. Despite the canceled spin-off, Old Navy continued with strategic initiatives, including the launch of its size-inclusive BODEQUALITY platform in 2021 and commitments to sustainability, such as eliminating plastic shopping bags by 2023.
In 2026, Old Navy faced renewed challenges. Its Q1 2026 net sales were up a modest 1% to $2.0 billion, with comparable sales also up 1%, but these results were below company expectations due to 'fashion misses' in seasonal categories like dresses. The situation worsened in Q2 2026, with net sales declining 4% to $2.1 billion and comparable sales also down 4%, attributed to a 'weak summer assortment' and an 'unanticipated slowdown in traffic' and 'marketing effectiveness reducing traffic.' These struggles prompted a significant leadership change. On August 27, 2026, Gap Inc. announced that Haio Barbeito would transition from his role as President and CEO of Old Navy, to be succeeded by Michael Francis, effective November 2, 2026. Francis, who joined Gap Inc. in March 2026 as Chief Customer Officer for Old Navy, is tasked with revitalizing the brand through enhanced storytelling, omnichannel experience, and in-store improvements.
As of September 1, 2026, Old Navy is actively 'rewiring' its marketing strategy, placing a strong emphasis on denim, a category that performed well in the first half of the year. Recent campaigns include collaborations with Cardi B and MrBeast to boost traffic and engagement. The brand also expanded into beauty with the nationwide launch of Old Navy Beauty Co. in August 2026. With 1,139 stores in the United States as of February 2026, Old Navy remains a critical component of Gap Inc.'s portfolio, contributing over half of its revenue, and its turnaround is central to the parent company's overall strategy.
What If...?
Explore alternate histories. What if Old Navy made different choices?