The troubled retailer said its online growth "leaves us well-positioned to fuel our brands going forward" but its shares sank 5.5%.
“We are not pleased with the third-quarter results and are focused on aggressively addressing operational issues," the struggling retailer says.
The surprise resignation of CEO Art Peck has Wall Street "wondering whether the split could be delayed or abandoned altogether."
The deals with Gap and The Children’s Place were disclosed in bankruptcy filings.
"It’s clear that Old Navy’s business model and customers have increasingly diverged from our specialty brands over time."
The retailer plans to focus on the "healthy core" of Gap specialty stores while exiting "those that do not fit the future vision quickly.”
The retailer affirmed full-year guidance and plans to open 60 Old Navy stores by the end of the year.
CBS Radio, Gap, Sheppard Pratt, Zebra Tech., NRG Yield, Huntsman, Align Tech., AmWINS, NN, Miller Industries
Hearst Television, Gap, ADT, USA Truck, Black Stone Minerals, CyrusOne, Exterran, General Cable, Nancy Buese, Rocket Fuel
Twenty CFOs who have career-defining tests ahead.
Fitch Ratings expresses doubts about Gap's cost-cutting strategy, saying earnings will fall this year even with $100 million in expense reduction.
The retailer's new CEO is still confident his strategy to fix the Gap stores will improve financial performance.
