Old Navy names Michael Francis president and CEO

Old Navy, the apparel retailer owned by Gap Inc., has appointed Michael Francis as its new president and chief executive officer. Francis, who joined the company in March as chief customer officer, will officially begin his new duties on November 2. Current CEO Haio Barbeito will transition into an advisory role.

Francis is known for his role in developing Target's "cheap chic" strategy in the early 2000s, a period when he served as executive vice president and chief marketing officer. This strategy helped differentiate Target from competitors by offering trendy, affordable merchandise.

The leadership change comes as Gap Inc. reported its second-quarter financial results, which highlighted challenges at Old Navy. The brand's net sales decreased by 4% year-over-year to $2.1 billion, attributed to softer performance in women's seasonal apparel and an unexpected decline in customer traffic.

Gap Inc.'s overall net sales rose 9% year-over-year to $844 million. The company also reported mixed results for its other brands, with Banana Republic seeing a 1% increase and Athleta experiencing a 12% decline. Gap Inc. shares rose more than 18% in premarket trading following the announcement.