Gap Appointed New Old Navy CEO to Reverse Sales Slump

Old Navy’s incoming leadership shift targets falling customer traffic as the brand accounts for 60% of Gap revenue.

Updated on Oct. 6, 2026 in Retail

Neatly folded colorful sweaters on wooden retail shelves in a modern, softly lit store. — Gap Inc. has named Michael Francis as the new CEO of Old Navy, replacing Haio Barbeito to address a decline in comparable sales. AI Illustration. Upload story photo >

Live Poll

Do you believe struggling retail brands can successfully turnaround their performance?

Gap Inc. has named Michael Francis as the new CEO of Old Navy, effective November 2, following a 4% year-over-year decline in the brand's comparable sales. The leadership change comes as the company seeks to stabilize the flagship segment that drives nearly 60% of its total revenue.

Why it matters

The change follows reports that recent marketing efforts lacked clear product messaging and that the brand suffered from reduced customer traffic. For operators, this highlights the necessity of aligning marketing spend with direct product value to maintain consistent store performance.

Old Navy reported $2.1 billion in net sales for the fiscal second quarter, which ended August 1, 2026. This figure represents the majority share of Gap Inc.'s $3.65 billion in total quarterly sales.

The players

Michael Francis

Incoming CEO of Old Navy who previously served as the brand's chief customer officer.

Haio Barbeito

The departing leader of Old Navy who held the position since 2022 and will move to an advisory role.

Gap Inc.

A global apparel retailer operating multiple brands including Old Navy, Banana Republic, and Athleta.

The details

Michael Francis, who joined the organization in May 2026 as chief customer officer, will replace outgoing leader Haio Barbeito. Barbeito, who led the division since 2022, will transition to an advisory role as the company attempts to pivot from recent summer campaigns that failed to resonate with customers. The move occurs as Gap Inc. manages a diversified portfolio that saw Athleta sales decline 12% alongside the Old Navy contraction.

Haio Barbeito has led Old Navy since 2022.
Michael Francis joined Old Navy as chief customer officer in May 2026.
The fiscal second quarter ended on August 1, 2026.
Gap announced the leadership change on October 6, 2026.
Michael Francis becomes CEO of Old Navy on November 2, 2026.

Market Landscape

This leadership change follows a broader industry trend of retail executives prioritizing marketing clarity to combat summer 2026 customer traffic declines. The shift underscores the high pressure on major revenue drivers to outperform within a volatile macroeconomic environment.

Operators should monitor Gap's upcoming full-year earnings guidance, which currently projects sales growth between 1% and 1.5%. Reviewing how your own customer acquisition strategies are tied to clear product-first messaging is essential for mitigating mid-year traffic volatility.

The takeaway

When flagship divisions show a 4% year-over-year decline in comparable sales, leadership turnover is often the primary strategic pivot. Business owners should audit their current product messaging to ensure summer and seasonal campaigns emphasize value over vague branding.