Old Navy Ushered In The New President And Chief Creative Officer As Head Of Athleta.

According to today's news of fashion business Daily, Nancy Green, the Athleta brand leader, will be the president and chief creative officer of Old Navy next year, leading the design, production and marketing of OldNavy products, and will report to Sonia Navy, chief executive officer of Old Navy.

It is understood that Athleta and Old Navy are both brands of fast fashion GAP group of the United States.

In early March this year, there were media reports that GAP's Old Navy brand would be split into an independent listed company. The remaining Gap brands, BananaRepublic and Athleta belong to another unnamed company. The annual sales of Old Navy itself is about $8 billion, and the annual sales volume of the unnamed new company is about $9 billion.

After splitting, the two companies will continue to develop according to different strategies. With the "more strategic focus and customized operation structure" operation, the split transaction will be completed in 2020. It is reported that the incumbent OldNavy company president and CEO Sonia Syngal will lead the newly established independent Old Navy company.

Since the 2014 fiscal year, the performance of the group's main brand GAP has begun to show negative growth. The development trend of OldNavy has been very rapid, which has made up for the unfavorable situation of GAP's sustainable development to a certain extent. In fiscal year 2017, OldNavy sales exceeded 7 billion 238 million, accounting for 45.7% of the group's total, while Gap sales accounted for 5 billion 318 million, accounting for 33.5% of the group's total. Therefore, OldNavy has replaced Gap and has gradually become the main engine of group growth. Insiders analyzed that the rapid growth of Old Navy was the main reason for the group to split up. In addition, after OldNavy is split into an independent company, it will no longer need to lend funds to the group to support other brands, and it will get better development.

It is easy to see that GAP group attaches great importance to Old Navy when they appoint new executives from the spin off market. However, the OldNavy, which has been placed with high hopes, seems to have entered the bottleneck of development after years of continuous growth. According to the first quarter earnings report of GAP group in fiscal year 2019, OldNavy revenue decreased by 1% during the period, while group net sales, comparable sales and gross profit decreased to varying degrees.