Gap to spin off Old Navy as stand-alone company, stock skyrockets more than 25%

The Gap Inc. shares skyrocketed more than 20% in after-hours trading Thursday after the retailer said it would split into two publicly traded companies, turning Old Navy into an independent entity.

Gap GPS, +0.16% said the Gap, Athleta, Banana Republic, Intermix and Hill City brands will remain grouped together in a yet-to-be-named company. Sales at the flagship Gap brand fell 5% globally in the fourth quarter, and Gap plans to close about 230 Gap stores in the next two years as part of an effort to “revitalize” the brand, which has sagged for years.

Gap’s stock finished the extended session up 25.6%, after ending the regular session up 0.2% at $25.40. Gap shares have lost 20% in the past 12 months, contrasting with gains of around 2.6% for the S&P 500 index. SPX, -0.28% In addition, Gap said Thursday it earned $276 million, or 72 cents a share, in the fourth quarter, compared with $205 million, or 52 cents as share, in the year-ago period. Sales fell to $4.6 billion, from $4.8 billion a year ago.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Gap will split into two publicly traded companies, with Old Navy as a stand-alone; stock surgesWho get's custody of Banana Republic?
Source: CNBC - 🏆 12. / 72 Read more »

Gap is splitting into two companies: Old Navy and everything elseGap Inc. will spin off its better-performing Old Navy brand into a separate public company. Its stock leaped as much as 23%. Is there still a gap? KTLA getzyrosas3 Did you know the Old Navy Outlets design (yes, design) their products for the outlet stores? What’s the definition of outlet to you? oldnavy gap retailers retail insidestory
Source: latimes - 🏆 11. / 82 Read more »

Old Navy and Gap are splitting into two companies. We visited both stores, and realized why one company is dominating the other.Gap is splitting off Old Navy into its own company. In late 2018 we shopped at both stores and saw why Old Navy has become so successful.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Gap to Split Into Two Publicly Traded CompaniesGap announced plans Thursday to split itself into two independent publicly traded companies—one unnamed company consisting of the iconic Gap brand, and Old Navy. That's going to open a really, really wide gap... Is it true was founded by a communist? That’s the way it used to be 🙄
Source: WSJ - 🏆 98. / 63 Read more »