Gap Inc., despite its management shake-up and weak overall performances across all three core brands, is still planning its public spin-off of Old Navy next year, the firm said Thursday.
“This is a pivotal time for the company,” said Robert J. Fisher, interim president and chief executive officer, during a conference call following the release of third-quarter numbers, which were disappointing. All three core brands — Old Navy, Gap and Banana Republic — dragged through the period, as the $16 billion corporation saw its net income fall to $140 million in the period ended Nov. 2, compared with $266 million a year ago.
Comparable sales overall were down 4 percent, with Old Navy Global down 4 percent, Gap Global down 7 percent and Banana Republic Global down 3 percent.
Net sales were $4 billion, a decrease of 2 percent compared with last year.
“We are not pleased with the third-quarter results and are focused on aggressively addressing the operational issues that are hindering the performance of our brands,” said Fisher. “We continue to make progress against our separation plans, which will provide improved focus and a further catalyst for transformation.”
Fisher, the son of the late Gap founder Donald Fisher, became interim president and ceo