With Old Navy separating into a standalone company, Gap plans to retain its brand name. The other brands of the company including Gap are: Athleta, Banana Republic, Intermix and Hill City will remain under Gap. Banana Republic is upper middle-class fashion, Athleta is female athleisure and Hill City is men’s performance lifestyle.

This split was done following the realization that Old Navy’s business model and customers had increasingly diverged from Gap’s other brands over time. Nancy Green is president and chief creative officer of Old Navy. Gap has been growing at an average annual rate of 3.4 per cent over the last three years. This growth has been driven almost completely by Old Navy, which contributed more than 95 per cent of the revenue growth over this period. Old Navy’s strong revenue growth coupled with a lower tax rate helped the company’s net income margin expand from 4.4 per cent in 2016 to over six per cent in 2018.

However, Gap’s iconic brand, Gap Global, has continued to struggle. The brand’s revenues over the last three years have fallen at an average annual rate of 5.4 per cent. Gap Global’s contribution to total revenue has gone down from more than 35 per cent in 2016 to about 31 per cent in 2018.