Gap and Old Navy are calling it quits with each other — at least in a business sense. The two are splitting into two publicly traded companies.
Gap Inc. said Thursday that one of the companies will contain Old Navy. The other yet-to-be-named business will comprise of Gap, Banana Republic and other brands, including Athleta.
Gap’s board chairman says each brand “requires a different strategy to thrive moving forward.”
Old Navy has thrived in recent years, and sales at stores open at least a year grew 3% in 2018. Meanwhile, the Gap has struggled — its sales fell 5% last year.