Gap Inc. announced that it is splitting into two independent, publicly traded companies.
Old Navy, the one brand within the portfolio that has been thriving over the last few years, will exist as its own entity.
Meanwhile, the other brands within the umbrella–Gap, Athleta, Banana Republic, Intermix, and the newly launched Hill City–will fall under a different holding company.
与此同时，Gap, Athleta, Banana Republic, Intermix和最新的Hill City等品牌都将归于另一家母公司。
In 2017, Old Navy’s sales were $7.2 billion, while Gap’s were $5.3 billion, and Banana Republic’s were $2.4 billion.
2017年，Old Navy销量为72亿美元，Gap销量53亿，Banana Republic为24亿。
According to a statement released by the company, this move came because the Gap Inc. board of directors identified that Old Navy now differs considerably from the other brands in the family.
“It’s clear that Old Navy’s business model and customers have increasingly diverged from our specialty brands over time, and each company now requires a different strategy to thrive moving forward,” said Robert Fisher, Gap Inc.’s board chairman.
“Recognizing that, we determined that pursuing a separation is the most compelling path forward for our brands–creating two separate companies with distinct financial profiles, tailored operating priorities and unique capital allocation strategies, both well positioned to achieve their strategic goals and create significant value for our customers, employees, and shareholders.”
Over the last couple of years, Old Navy has buoyed Gap Inc., even as other brands within the network experienced declines in sales and foot traffic to stores.
Old Navy’s success can partly be attributed to the fact that it mimicked fast fashion brands, and fed into consumer demands for cheap, fashionable clothes quickly.