Mark Kauzlarich | Bloomberg | Getty Images
Pedestrians walk past Gap Inc. and Old Navy Inc. in the Times Square area of New York City.
Gap Inc. announced Thursday that it would split into two independent publicly traded companies, one from Old Old Navy, and then a company to be named, which will include other brands such as Banana Republic and Athleta.
After a review of Gap's board of directors, "it's clear that Old Navy's business model and customers are differentiating more and more from our specialty brands and that every company now needs a different strategy to thrive. "said Robert Fisher, chairman of Gap's board of directors.
Gap said the new company, which is currently referred to as "NewCo", will achieve annual sales of about $ 9 billion. It will include homonymous brands Gap, Banana Republic, Intermix and Athleisure, Athleta and Hill City.
Old Navy, meanwhile, makes about $ 8 billion in annual sales. This brand is the strongest of the Gap Inc. family, Gap's eponymous label struggling to increase sales recently.
The current CEO of Gap Inc., Art Peck, will remain the CEO of "NewCo," said Gap. Sonia Syngal, the current President and CEO of Old Navy, will head the new autonomous Old Navy company.
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