Separated from the struggling Gap brand, analysts and experts think Old Navy will thrive.
Gap Inc.’s decision to split Old Navy into its own company is being cheered by experts, analysts and investors who think this portfolio star will now be able to shine more brightly.
“The key motivation here isn’t about the Gap but rather to ensure that the success of Old Navy won’t continue to be overshadowed and weighed down by the sluggishness of Gap performance. By splitting the businesses out, Old Navy has the best opportunity to thrive and deliver value to shareholders without Gap dragging down combined performance.”On the earnings call, Gap Chief Executive Art Peck discussed the ways in which the different names under the Gap Inc. GPS, +16.
“Old Navy is one of the most attractive concepts in apparel retail,” wrote KeyBanc Capital Markets analysts led by Edward Yruma. “The banner has consistently had some of the strongest comps in our coverage and we think that its positioning of bringing value and fashion to a family consumer is an important differentiator.”Old Navy as a stand-alone company, which will continue to be led by Sonia Syngal, will have about $8 billion in annual revenue.
“In our view, there is more strategic rationale to spin out Athleta than Old Navy, but perhaps the timing isn’t quite right for Athleta,” Meyer wrote.
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
Gap to spin off Old Navy as a stand-alone companyOld Navy’s business model and customer base have diverged from the Gap’s other specialty brands, executive says.
और पढो »
Gap Stock Surges, Workday Gains, and 3 More Friday Morning MoversGap rallied on news that the apparel retailer plans to spin off Old Navy into a separate firm, while renewed hope for a U.S.-China trade deal lifted stocks in general.
और पढो »
Gap to spin off Old Navy, close stores - Reuters TVGap Inc., the parent of Gap stores and Old Navy, announced the retailer will shut 50 percent of its name brand outlets and spin-off the money-making Old Navy unit into a separate publicly traded company.
और पढो »
Gap will split into two publicly traded companies, with Old Navy as a stand-alone; stock surges
और पढो »
Old Navy splits off from GapGap Inc announced plans Thursday to create two independent publicly traded companies.
और पढो »
Gap is soaring after announcing it's spinning off Old NavyGap shares surged late Thursday after the retailer announced it was spinning off its Old Navy unit.
और पढो »
The Gap And Old Navy Are Consciously UncouplingOld Navy And The Gap Are Separating
और पढो »
Gap is splitting into two companies: Old Navy and everything elseGap Inc. will spin off its better-performing Old Navy brand into a separate public company. Its stock leaped as much as 23%.
और पढो »