The spin off was canceled after the retail company realized that the separation would not benefit its bottom line the way it had initially hoped.
The news comes as Gap Inc. said it was more optimistic about the final tally of sales for the 2019 fiscal year. It now expects them to more likely decline in the range of the low single digits rather than the mid-single digits.
“The work we’ve done to prepare for the spin shone a bright light on operational inefficiencies and areas for improvement,” Fisher said. “We have learned a lot.'' Like many retailers rocked by the rise of online shopping and fast fashion, Gap has struggled. It has slated roughly 200 Gap stores for closure, and in November it announced that the parent company's then CEO Art Peck would be resigning.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
![Gap Inc. Scraps Plan to Spin Off Old Navy Into Own Company [Updated]](https://i.headtopics.com/images/2020/1/17/fashionista-com/gap-inc-scraps-plan-to-spin-off-old-navy-into-own-company-updated-1217926637561557001.webp?w=640)
Gap Inc. Scraps Plan to Spin Off Old Navy Into Own Company [Updated]Robert Fisher, Gap Inc. interim president and chief executive officer, released a statement on the decision.
Weiterlesen »
Gap cancels plan to spin off Old Navy, citing 'cost and complexity' - Business InsiderInterim CEO Robert Fisher said the process of spinning off Old Navy shone a 'bright light on operational inefficiencies and areas for improvement.'
Weiterlesen »
Gap won't spin off its Old Navy brandGap ended plans to spin off its Old Navy brand Thursday, reversing a strategy announced less than a year ago.
Weiterlesen »
Gap cancels Old Navy spinoff, citing 'cost and complexity'Gap Inc. said late Thursday it no longer plans to spin off its Old Navy brand, saying the "cost and complexity" of the separation limited the creation of "appropriate value" from the split. The process of preparing the spinoff shone a light onto operational problems and areas for improvement, the company said. "We have learned a lot and intend to operate Gap Inc. in a more rigorous and transformational manner that empowers our growth brands, Old Navy and Athleta, and appropriately focuses on profitability for Banana Republic and Gap brand," interim Chief Executive Robert Fisher said in a statement. Gap plans to appoint a new CEO overseeing all brands, the company said. In the same statement, Gap said it expects fiscal 2019 same-store sales and net sales to at the higher end of a previous guidance between down mid-single digits and down low-single digits. Thanks to better-than-expected promotional levels over the holiday period, particularly at Old Navy, Gap forecast adjusted fiscal year 2019 earnings per share to be "moderately above" a previous guidance between $1.70 and $1.75. Shares of Gap rose 9% in the extended session Thursday after ending the regular trading day up 3.9%.
Weiterlesen »
Progress stalled on closing racial gap in health insurance since Trump took officeWhile the Affordable Care Act ushered in huge improvements in access to health care for black and Hispanic adults in the U.S., that progress appears to have stalled, according to new research.
Weiterlesen »
Telfar Is Collaborating With GapThe maker of New York’s most popular bag is teaming up with a mass retailer—and the results don’t disappoint.
Weiterlesen »