American fashion conglomerate Gap Inc. said it would keep its current company trading name, following the spin-off of its Old Navy brand.
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The San Francisco-based retailer said the new company, currently referred to as New Co, will in fact, keep the Gap name, which oversees its Gap brand, in addition to Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City.
The news follows a week of milestone celebrations for the heritage label Gap, feting its 50th anniversary this month.
“As we celebrate this milestone anniversary, we have reflected on the remarkable history of this amazing company and the power and global influence of the Gap name,” said Art Peck, President and Chief Executive Officer of Gap Inc, in a press release.
“Over the past 50 years the credibility and reputation the company has built with the Gap Inc. name transcends any individual brand,” Art continued.
Announcing the spin-off in March, Old Navy will continue to operate under its current name when it becomes a standalone, publicly traded company.
“Our brands remain a cultural cornerstone with global relevance,” Peck added.
“I am optimistic and excited about the future of the new Gap Inc. Our focus will be on delivering quality revenue growth, and accelerating profitability and cash flow, while positively impacting our employees, our shareholders, the communities in which we do business, and our planet,” Peck continued.
Sonia Syngal— who has helmed Old Navy since 2016 — will continue as CEO, and Art Peck will become CEO of the new Gap Inc.
Looking ahead, Gap said it plans to host an investor event on September 12 in New York where Peck and Syngal will provide an update on the planned separation.
In late August, Gap Inc. posted quarterly same-store sales that fell short of analysts’ estimates. For the three months, same-store sales fell 5%, compared to a 1.11% decline,
predicted by IBES data from Refinitiv.