Our Take
Francis joins a brand already showing momentum, suggesting Gap Inc. is doubling down on Old Navy rather than fixing the struggling core Gap brand.
Why it matters
Retail turnarounds succeed by focusing resources on winning segments. Francis's hire signals Old Navy is Gap Inc.'s chosen growth vehicle while Gap brand flatlines.
Do this week
Retail marketers: Study Old Navy's Q4 2024 marketing spend allocation before March earnings to see which channels drove their 3% growth.
Gap Inc. promotes Old Navy with veteran Target CMO hire
Gap Inc. appointed Michael Francis as chief customer officer of Old Navy and head of marketing shared services across the company's brand portfolio. Francis previously served as CMO at Target and president of JCPenney, and most recently advised Old Navy before taking the permanent role.
The hire comes as Old Navy shows the strongest performance in Gap Inc.'s portfolio. Old Navy's 2025 net sales hit $8.7 billion, up 3% year-over-year (per company filing). Gap brand grew 5% while Banana Republic declined 1%. Combined, Gap Inc. posted $15.4 billion in net sales, a 2% increase.
Francis will report to Old Navy president and CEO Haio Barbeito and work alongside interim CMO Derek Yarbrough. His dual role includes overseeing media strategy and influencer platforms across all Gap Inc. brands: Gap, Old Navy, Banana Republic, and Athleta.
Resource allocation reveals turnaround priorities
Gap Inc. CEO Richard Dickson, who joined in 2023, is executing a portfolio-wide turnaround. Francis's appointment to a newly created role indicates management is betting on Old Navy as the primary growth driver rather than trying to revive the struggling Gap flagship brand.
The numbers support this focus. Old Navy generates 56% of Gap Inc.'s total revenue (per company filing) and maintains positive growth while Banana Republic contracts. Gap brand's 5% growth looks strong but comes from a much smaller base after years of market share losses.
Francis brings experience from successful retail turnarounds. At Target, he led marketing during the company's recovery from its 2013 data breach and subsequent brand repositioning. His JCPenney tenure, though less successful overall, included expertise in mass-market customer acquisition.
Old Navy becomes the test case for integrated retail marketing
Francis's dual mandate combines brand-specific customer experience with cross-portfolio marketing efficiency. This structure lets Gap Inc. test integrated marketing capabilities on its strongest performer before rolling changes to struggling brands.
The shared services model Francis will lead covers media buying and influencer partnerships across four brands with different customer bases and price points. Success here could provide a playbook for other multi-brand retail portfolios trying to balance brand distinctiveness with operational efficiency.
Watch Old Navy's marketing spend concentration in the next two quarters. Francis's Target background suggests potential increases in digital customer acquisition and loyalty program investment, areas where Old Navy currently lags competitors like Walmart and Amazon's private labels.