Old Navy Overhauls Its Marketing Strategy After a Disappointing Summer

Major US apparel retailer Gap Inc. reported second-quarter results, for the period ended August 1, that came in below expectations — driven largely by the company's biggest brand, Old Navy. CEO Richard Dickson told analysts on the earnings call that the brand's summer marketing efforts failed to drive the traffic expected, leading Old Navy's comparable sales to fall 4% year over year to $2.1 billion.

Following several consecutive quarters of weak results, the company also announced a change in Old Navy's CEO, describing it as a "planned transition." At the same time, the brand rapidly rebuilt its marketing strategy ahead of the fall season — with the primary focus now shifted to denim, which performed well in the first half of the year, Dickson said. "We're turning Old Navy into a denim powerhouse," he said.

In early August, Old Navy launched a campaign featuring Cardi B promoting wide-leg jeans, joined by blogger and models Quenlin Blackwell, Paloma Elsesser, and Brooks Nader. The project, called "Most Wanted Denim," quickly became the brand's most-viewed campaign ever, and Dickson said the company is already seeing a meaningful traffic lift in August. In addition, as part of its back-to-school marketing push, Old Navy launched a multi-part video series in partnership with popular creator MrBeast. "With execution improving in August, we're seeing the business come back to life — that reinforces our confidence that we've chosen the right path," Dickson said.

Another Gap Inc. brand, athletic-wear label Athleta, is also going through a rough patch: its comparable sales fell by a double-digit percentage for a second straight quarter. Athleta, the company's smallest brand by revenue, unveiled a new campaign for fall 2026 this week — the start of a broader brand overhaul. According to Athleta's chief marketing officer, Erika Everett, the brand is now placing greater emphasis on purpose-driven messaging and stories featuring women succeeding in traditionally male-dominated fields, while also increasing its investment in social media.

Gap Inc.'s flagship brand, Gap, kept growing in the second quarter: comparable sales rose 10%, marking an 11th consecutive quarter of growth. A '90s-inspired denim collection released in partnership with Hailey Bieber sold out quickly and had a "meaningfully positive impact" on the company's overall business, Dickson said.

Taken together, the three brands show that Gap Inc. is applying the same marketing formula — a mix of celebrity, music, and nostalgia — consistently across its portfolio. The case remains a vivid example of just how quickly a rapid strategic pivot can move the needle on sales, especially for major retail chains.