Business Insider/Jessica Tyler Old Navy is Gap's biggest strength.
- Old Navy is spearheading Gap Inc.'s growth.
- Gap Inc. saw 2% sales growth overall in the most recent fiscal quarter, with the Old Navy brand reporting comparable sales were up 5 % this quarter.
- We visited an Old Navy store to see why it's doing so well.
Old Navy is spearheading Gap Inc.'s growth.
Gap Inc., parent company of Gap, Banana Republic, Old Navy, and Athleta, saw 2% sales growth overall in the most recent fiscal quarter, with growth spearheaded by Old Navy and Athleta. It was the seventh consecutive quarter of positive comparable sales growth for the company.
Old Navy is the most successful of the Gap brands, with comparable sales up 5% this quarter. So far in 2018, Old Navy has opened 28 stores and completed 85 remodels. CEO Art Peck announced in an earnings call on Thursday that Old Navy will be launching a plus size collection, which was previously only available online and in select stores.
Meanwhile, Gap's comparable sales slipped 5%, in large part because it offers a lot of what Old Navy does for a higher price. Old Navy is able to prevail over Gap and the other Gap Inc. brands, in part, because it sells similar styles to Gap at a lower price point. When we visited Gap recently, we noticed a lot of sale signs, a small variety of products, and generally high prices.
We recently visited an Old Navy, and saw why it's doing so well.