Fashion company Gap Inc. announced the closure of 230 stores and the closure of its Old Navy brand, a restructuring aimed at "revitalizing" the company.
It then became apparent that new figures were showing that Gap's same-store sales continued to fall as Old Navy's revenues increased.
Old Navy will be a standalone company while a new company, which has not yet been named, will host Gap as well as its other brands, including Banana Republic.
Gap Inc. said the closures would be primarily in North America.
The company said it has already closed 55 of its eponymous stores.
That leaves 742 Gap stores in the world.
It is unclear how many jobs will be lost or where closures will take place over the next two years.
This is part of a strategy to "revitalize" the brand and generate more online sales, hoping to reach 40% of total revenue.
Once once a cool, sporty and casual word, and promoted through high-profile advertising campaigns directed by Madonna and rapper Missy Elliott, Gap's popularity among young and fashionable people has recently declined.
The cheaper fast food brands such as Zara, H & M and Forever 21 are now attracting younger buyers and Gap sales have fallen in recent years.
In its latest financial results, Gap Inc. reported that same-store sales of its namesake stores had dropped 5% from the fourth quarter and throughout the year.
Same store sales were stable for Old Navy in the fourth quarter, but increased 3% year-over-year.
Christina Boni, vice president of Moody's rating agency, said: "Old Navy is the leading brand of Gap Inc. and represents 47% of the revenue in 2018, with margins that dominate his portfolio.
"Old Navy continues to outperform the Gap and Banana Republic brands and is one of the fastest growing leading apparel brands, with same-store sales of 3% in 2018, reaching over $ 7.8 billion. dollars in 2018. "
However, she warned that the split of Old Navy "would reduce the diversification provided by the brand to the whole entity".
In the fourth quarter, operating income fell to $ 372 million from $ 396 million. Revenues declined slightly to $ 4.6 billion.