"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.
The Gap announced it was closing 75 stores, including Old Navy Japan, as sales continue to plunge and profits dwindle.
The company estimates roughly $300 million in annualized sales losses associated with the store closures.
