Gap shares rose about 14% in premarket trading on Friday after the apparel retailer appointed industry veteran Michael Francis as CEO of Old Navy, its biggest brand. The move is intended to reinvigorate the chain as family spending faces pressure and Old Navy struggles in selected women’s apparel categories. Since Richard Dickson became CEO in 2023, Gap has refreshed its leadership and marketing, helping Gap and Banana Republic, while Old Navy has continued to lag. Old Navy’s comparable sales (sales at established stores) fell 4% in the second quarter, its first decline in 12 quarters, even as Gap exceeded estimates with 10% comparable-sales growth. Gap raised its annual profit forecast after beating quarterly expectations but narrowed its fiscal 2026 sales-growth outlook to 1%-1.5% from 1%-2% because of economic uncertainty. Analysts said the appointment highlights management’s focus on stabilizing the company’s largest banner, while Neil Saunders of GlobalData said Old Navy must give its family customers stronger reasons to buy. Gap’s forward 12-month price-to-earnings ratio was 8.33, versus 8.94 for American Eagle Outfitters and 11.93 for Urban Outfitters.