Gap Named Michael Francis as New Old Navy CEO
The leadership change follows a fiscal second quarter where Old Navy reported a 4 percent year-over-year sales decline.
Updated on Sept. 29, 2026 in Retail
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Gap Inc. has appointed Michael Francis to serve as the new CEO of Old Navy, effective November 2. He succeeds Haio Barbeito, who has led the brand since 2022 and will transition into an advisory capacity.
Why it matters
The leadership transition follows an unanticipated slowdown in customer traffic that hampered sales for the retail brand. As Old Navy generates nearly 60 percent of total Gap Inc. revenue, stabilizing the brand is critical for the company's fiscal outlook.
Old Navy reported fiscal second quarter net sales of $2.1 billion, a period where Gap Inc. recorded $501 million in net income. Following the announcement, Gap shares rose 12 percent in extended trading.
The players
Michael Francis
He is the incoming CEO of Old Navy who previously served as the brand's chief customer officer.
Haio Barbeito
He is the outgoing Old Navy CEO who will transition into an advisory capacity at Gap Inc.
Gap Inc.
It is an American retail corporation that owns brands including Old Navy, Gap, and Banana Republic.
The details
Michael Francis previously joined Old Navy as chief customer officer in May. Gap Inc. expects full-year net sales growth to land between 1 percent and 1.5 percent, with adjusted earnings per share projected between $2.35 and $2.45.
Timeline
Haio Barbeito began his tenure as Old Navy CEO in 2022.
Michael Francis joined the company as chief customer officer in May 2026.
The fiscal second quarter ended on August 1, 2026.
Michael Francis is scheduled to assume the CEO role on November 2, 2026.
Market Landscape
This leadership change follows the 2023 Gap Inc. multi-year restructuring plan, which aims to improve brand performance and margin efficiency. The shift highlights the ongoing industry pressure to optimize the performance of core revenue-driving banners.
Shoppers are unlikely to see immediate changes to in-store pricing or product availability as a result of this executive transition. Customers can monitor upcoming holiday promotional cycles to determine if new leadership impacts discounting strategies.
The takeaway
Retailers frequently shuffle top leadership when a core brand struggles to maintain foot traffic and conversion rates. Investors often view these management changes as a signal that the company is taking active steps to correct underperformance.
Further reading
For more on the latest shifts in the sector, visit the Retail section.
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