Gap Inc.’s announcement that it will separate Old Navy from its portfolio of brands to create two independent and publicly traded entities tells a tale of two companies. Over the last three years, it has continued to grow in sales and store count, often at the expense of Gap stores. From a revenue perspective, Old Navy will provide over $8 billion in annual sales while the yet-to-be-named NewCo (Gap, Banana Republic, etc.) Gap Inc.’s decision to divide the companies is targeted for completion by 2020 and is not expected to cause changes in leadership at either Old Navy or Gap. Additional transparency into the Old Navy business will allow the market to more accurately value Old Navy and this new proposed entity.

Source: Forbes March 01, 2019 01:07 UTC