Gap named Michael Francis president and CEO of Old Navy effective Nov. 2 and raised fiscal 2026 adjusted EPS guidance to $2.35-$2.45 after second-quarter adjusted profit of 52 cents beat the 48-cent consensus. Sales of $3.651 billion missed the $3.690 billion estimate as companywide comparable sales fell 1%. Gap brand comparable sales rose 10% for an 11th straight quarter, supported by a two-year focus on cultural relevance, rising stars, music moments and TikTok-oriented campaigns, while Banana Republic comps rose 3%, Old Navy comps fell 4% and Athleta comps fell 12%. Gap narrowed its fiscal 2026 sales outlook, cut Old Navy's full-year comps forecast to flat to down 1%, raised its adjusted gross-margin outlook and repurchased $200 million of shares during the quarter.