Old Navy splits off from Gap

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Old Navy.

• Gap Inc is splitting in two.
• The retailer announced Thursday that it will be separating into two publicly traded companies - Old Navy and a yet-to-be-named company that will consist of the Gap brand, Athleta, Banana Republic, Intermix and Hill City.

Old Navy is going out on its own.

On Thursday, Gap Inc announced that it would be splitting the retail company into two publicly traded companies - Old Navy and a yet-to-be-named company that will consist of the Gap brand, Athleta, Banana Republic, Intermix and Hill City.

"Following a comprehensive review by the Gap Inc. Board of Directors, 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," Robert Fisher, Gap Inc.'s Board Chairman said in a statement to the press.

He continued: "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."

Old Navy is considered to be one of Gap Inc's biggest sweet spots.

This story is in progress.