Gap pulls plug on Old Navy spinoff to focus on turning around sales
Share:
(Reuters) - Gap Inc on Thursday called off a plan to spin-off its Old Navy brand and said it would instead work to stem dropping sales, while fewer discounts during the holiday season helped earnings, sending its shares up about 6%. The move to cancel the separation came as a surprise as just two months ago the company had stuck to its plan despite several analysts calling for the strategy to be canned due to weak sales and the abrupt exit of Chief Executive Officer Art Peck.The spin-off plan..