Old Navy has appointed retail veteran Michael Francis as its next president and CEO as the brand grapples with declining sales and pressure to sharpen its product offering. His elevation from chief customer officer signals a renewed focus on customer insight, cultural relevance and the in-store experience – but analysts warn that a successful turnaround will require better merchandise and more consistent execution, not just stronger marketing. Francis will succeed Haio Barbeito, who has led Ol
led Old Navy since 2022, on 2 November. He joined the brand in March as chief customer officer and head of shared marketing services.
Before joining Old Navy, Francis spent 26 years at Target, including more than a decade as EVP and CMO. He subsequently served as a strategic advisor to Walmart’s C-suite and board for a decade. Gap Inc. president and CEO Richard Dickson described the appointment as “a planned and thoughtful transition”, rather than a direct response to Old Navy’s recent sales performance.
“Old Navy is poised for its next chapter of growth, and Michael is uniquely equipped to step into this operating role,” Dickson said. “Michael is one of the most respected commercial, brand and customer leaders in retail.”
Investors responded positively to the announcement, with Gap shares rising.
What experts have to say about Old Navy’s new CEO
Neil Saunders, managing director of GlobalData, said the leadership change comes at a pivotal point as Old Navy’s performance declines.
“Not only did Old Navy comparable sales deteriorate from last quarter, but they also ended up in negative territory to the tune of negative four per cent,” said Saunders. “This is an extremely weak performance that is the consequence of an assortment that remained lacklustre across most of the trading period – with far too much bloat and not nearly enough must-have style. Because this problem has been embedded in the business for a while, this is reducing visit frequency – which may now make it challenging for the brand to rebuild quickly.”
Some of Old Navy’s difficulties can be attributed to the financial pressure facing its core customers. However, Saunders said the brand had not given them enough reasons to buy.
“This is now quite a serious challenge that the group needs to correct and cannot simply dismiss as a modest range misstep. Fortunately, Gap seems to understand this, which is why it has made the decision to install a new CEO to refresh the brand and its approach.”
Frankie Margotta, strategy director at consulting firm Triptk, agreed with Saunders that Francis was well suited to the CEO role.
“Michael Francis is a great pick, as he not only has a ton of relevant experience from his time at Target, JCPenney and Walmart, but he’s also coming from within the organisation with a high degree of familiarity in how Old Navy exists and operates,” said Margotta.
Francis’s customer-centric background should serve the brand well, Margotta said. He will enter the role with an informed perspective on what customers already love about Old Navy, what they are craving and how their needs are evolving.
Margotta added that Francis’s focus on elevating the in-store experience and revitalising the brand was the right approach, particularly because Old Navy still had a strong foundation.
“It’s declining, but it isn’t flatlining,” he said. “Old Navy still anchors Gap Inc.’s portfolio and isn’t necessarily in need of an overhaul or wholesale reinvention. That said, the work can’t stop at making the shopping experience more fun or enticing.”
To compete in the fiercely contested accessible-fashion segment, Francis and his team will need to rekindle Old Navy’s fun, family-centric and egalitarian American spirit. They must then translate it into a clearer point of view on core products, use cases and design codes.
“The remit is then to apply those equities thoughtfully and distinctly across the multicultural, multigenerational families the brand needs to keep winning with, while giving lapsed customers a reason to come back,” concluded Margotta.
How Michael Francis should proceed as Old Navy’s new CEO
Finally, Barney Stacher, CEO of consultancy Retail OCD, warned Francis cannot deliver a turnaround through marketing alone. “Old Navy’s four per cent decline points to problems with both products and traffic, particularly in women’s seasonal apparel,” Stacher said.
Francis must first sharpen the assortment, improve the brand’s speed and responsiveness to customer demand, and restore the balance between dependable family basics and enough newness to encourage shoppers to return. Old Navy also needs to reconnect its marketing, digital experience and stores so that every channel reinforces the same clear value proposition, Stacher said.
Collaborations, such as the recent one with Christopher John Rogers, and celebrity campaigns, like the one featuring Cardi B and influencer Wisdom Kaye, can generate attention. However, that attention will convert into sales only if the product, price and store experience deliver on the promise.
“Francis is well qualified to reposition Old Navy, but his real test will be turning customer insight into better merchandise and consistent execution – not simply louder storytelling,” said Stacher.
Further reading: From nostalgia to next gen: Why Gap thinks Australia is ready for its return
