Gap Named Michael Francis as Old Navy CEO

The apparel operator looks to reverse a 4% sales decline by installing a new executive at its largest revenue driver.

Updated on Sept. 29, 2026 in Retail

Bold flat-color editorial illustration of stacked denim fabric folds, representing a structural change in the apparel industry. — Gap Inc. has appointed Michael Francis as the new CEO of Old Navy, a move intended to reverse a 4 percent decline in sales at the retailer’s largest brand. AI Illustration. Upload story photo >

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Gap Inc. has appointed Michael Francis to lead its Old Navy brand, which accounts for nearly 60 percent of the parent company's total revenue. The transition comes as Old Navy faces a 4 percent year-over-year decline in comparable sales.

Why it matters

The change follows an unanticipated slowdown in customer traffic that has hampered the brand's performance. By replacing outgoing CEO Haio Barbeito, Gap Inc. is looking to stabilize its primary profit driver to meet its full-year guidance of 1 percent to 1.5 percent sales growth.

Old Navy reported fiscal second quarter net sales of $2.1 billion, representing approximately 60 percent of Gap Inc.'s $3.65 billion total revenue. The parent company reported a total net income of $501 million.

The players

Gap Inc.

A global specialty retailer that operates a portfolio of apparel brands including Old Navy, Banana Republic, and its namesake banner.

Michael Francis

The incoming CEO of Old Navy who previously served as the company's chief customer officer.

Haio Barbeito

The outgoing CEO of Old Navy who has held the top position at the brand since 2022.

The details

Michael Francis, who joined the retailer as chief customer officer in May, will take the helm of the brand on November 2. He replaces Haio Barbeito, who led the division since 2022 and will move into an advisory role. The company is leaning on the leadership change to help secure adjusted earnings per share between $2.35 and $2.45 for the fiscal year.

May 2026: Michael Francis joined Old Navy.
August 1, 2026: The fiscal second quarter ended.
November 2, 2026: Michael Francis assumes his new role as CEO.

Market Landscape

This leadership transition follows the 2022 appointment of Haio Barbeito and signals a pivot in retail strategy after recent performance fluctuations. The move aims to realign the brand's trajectory with the broader success seen in other segments like the Gap banner.

Operators should monitor the upcoming leadership transition as a signal for potential shifts in inventory management or customer acquisition strategies. Watch the next earnings report to see if the brand’s traffic trends improve under the new executive.

The takeaway

Management turnover is a critical signal for operators to watch when a core business unit faces declining performance. Use this transition to track whether the new leadership shifts the focus toward discounting or premium product positioning in the coming quarter.