Gap Inc To Split Into Two Separate Companies

CNBC reports:

Gap Inc. said Thursday it will split into two independent publicly traded companies — one comprised of its Old Navy brand, and the second a yet-to-be-named company that includes its other brands like Banana Republic and Athleta. Its shares surged more than 20 percent in after-hours trading on the news.

Following a review by Gap’s board of directors, “it’s clear that Old Navy’s business model and customers have increasingly diverged from our specialty brands over time, and each company now requires a different strategy to thrive moving forward,” Gap board Chairman Robert Fisher said.