Deals
Gap Surges After Announcing Plan to Spin Off Old Navy
- Old Navy’s robust sales have been propping up parent company
- Analysts praised the planned split, calling it ‘long overdue’
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Gap Inc.’s announcement that it’s spinning off the best part of its business -- Old Navy -- sent the apparel retailer’s shares soaring 25 percent in premarket trading.
The remaining company, which still needs a name, will consist of the namesake Gap brand, Athleta and Banana Republic, plus a couple of lesser known brands. It will have annual revenue of about $9 billion, compared to Old Navy’s $8 billion, the company said.