On August 28, Gap, Inc surged 14.91% overnight, trading at $23.89/share, driven by better-than-expected Q2 earnings, an upward revision to full-year profit guidance, and a major leadership appointment at its largest brand.

Gap, Inc reported fiscal Q2 adjusted EPS of $0.52, beating the analyst consensus estimate of $0.48 by 8.33%. Revenue came in at $3.651 billion, slightly below the $3.690 billion estimate. The company raised its full-year adjusted EPS guidance to $2.35-$2.45, above the prior market expectation of $2.32. The core Gap brand delivered a standout performance with comparable sales growth of 10%, marking its 11th consecutive quarter of growth.

Simultaneously, the company appointed industry veteran Michael Francis as the new CEO of Old Navy, its largest brand accounting for nearly 60% of total revenue. This move addresses sustained market concerns about Old Navy's underperformance, which had triggered a 14% stock decline following Q1 results in May when the company cut sales guidance due to weak spring/summer collections. CEO Richard Dickson stated the new leadership will play a critical role in unlocking Old Navy's full potential.

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