Women's Wear Daily

Struggling Gap Inc. Still Moving Forward on Old Navy Spin-off

Gap Inc., despite its management shake-up and weak overall performances across all three core brands, is still planning its public spin-off of Old Navy next year, the firm said Thursday. “This is a pivotal time for the company,” said Robert J. Fisher, interim president and chief executive officer, during a conference call following the release of third-quarter numbers, which were disappointing. All three core brands — Old Navy, Gap and Banana Republic — dragged through the period, as the $16 billion corporation saw its net income fall to $140 million in the period ended Nov. 2, compared with $266 million a year ago. Comparable sales overall were down 4 percent, with Old Navy Global down 4 percent, Gap Global down 7 percent and Banana Republic Global down 3 percent. Net sales were $4 billion, a decrease of 2 percent compared with last year. “We are not pleased with the third-quarter results and are focused on aggressively addressing the operational issues that are hindering the performance of our brands,” said Fisher. “We continue to make progress against our separation plans, which will provide improved focus and a further catalyst for transformation.” Fisher, the son of the late Gap founder Donald Fisher, became interim president and ceo

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Abercrombie & Fitch Grows Overseas

Abercrombie & Fitch Co. is upping its stake overseas. On Thursday, A&F said it will open Friday an Abercrombie & Fitch store with abercrombie kids, in Westfield London, the largest shopping destination in Europe drawing 30 million visitors a year. Westfield London also has a Hollister store, which includes A&F’s Gilly Hicks brand. A&F also announced that it’s relocating its Europe, Middle East and Africa home office to a Savile Row space, occupied by abercrombie kids, allowing more room for its expanded team in the region. The abercrombie kids store will be relocated into the nearby A&F Burlington Gardens store. The transition begins in early 2020 and should be done by summer. “These exciting new stores and changes reflect our commitment to global growth as we continue to adapt our playbooks for European markets,” said Fran Horowitz, chief executive officer, Abercrombie & Fitch Co. “With our growing team in the region, we’re getting closer to our local consumer, and both the Burlington Gardens and Westfield London locations will be an opportunity to bring relevant products and experiences to both our adult and kids customers.” Keith Mabbett, director of leasing for Unibail-Rodamco-Westfield, said Westfield London is the only location in London for shopping all of

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