Mar
01
Gap to spin off Old Navy
Posted in: Uncategorized
In what reads as a desperate move, Gap Inc. is spinning off the best part of its business: Old Navy. The market liked the news, sending shares soaring more than 28 percent in aftermarket trading.
The remaining company, which still needs a name, will consist of the namesake Gap brand, Athleta and Banana Republic, plus a couple of lesser known brands. It will have annual revenue of about $9 billion, compared to Old Navy’s $8 billion, the company said.
Analysts called the split a smart oneand one the struggling parent company should have considered long ago.
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