CNBC Gap shares jump after company names new Old Navy CEO to revive struggling brand

There's a divide inside Gap right now, with the namesake brand firing on all cylinders, Old Navy is struggling. The Gap brand posted a 10% jump in comparable sales in the second quarter. That's the 11th straight quarter of positive comps. But Old Navy saw comp sales fall 4%, its first decline in 12 quarters. And it's significant because Old Navy accounts for more than half of Gap sales. Now analysts at BTIG, though, saying the weakness looks like an execution problem rather than a broader consumer problem. Old Navy had to heavily promote women's summer merchandise after it failed to resonate with shoppers, and that is where the new CEO comes in. Michael Francis will take over Old Navy in November. He has senior retail experience at both Walmart and Target. Gap said this was a planned transition, not a sudden shakeup. Management also said it's already seeing improvement, with a new fall assortment and marketing push designed to get Old Navy back on track. Meanwhile, the overall earnings were stronger than the headline sales numbers suggest, with revenue falling 2%. Adjusted EPS did come in at 52 cents ahead of expectations. Gap also raised its full-year EPS outlook, even as it narrowed its sales growth forecast. So the story here for investors is pretty clear: Gap is working. The question now is, how soon can leadership turn around Old Navy?