Old Navy Adds a Walmart Veteran as Sales and Traffic Slip

Old Navy has added another senior operator to a leadership team that is being rebuilt around weaker sales and merchandising misses. Nicole Colombo, formerly general manager of fashion for Walmart's marketplace, is now leading women's merchandising at the Gap Inc. brand, according to her LinkedIn profile and reporting by Retail Dive.

Colombo brings marketplace experience from Walmart and eBay, along with earlier roles at Gap Inc., including responsibility for women's and petites merchandising at Banana Republic Factory. Gap and Old Navy had not commented on the appointment when Retail Dive published its report, so the company has not yet disclosed her mandate, reporting line or performance targets.

The timing makes the hire more than a routine personnel change. Michael Francis became Old Navy's president and chief executive on November 2, replacing Haio Barbeito. Gap's August 8-K says Barbeito moved into an advisory role through January 30, 2027. Francis had joined Gap earlier in 2026 as Old Navy's chief customer officer and head of shared marketing services.

The operating backdrop explains the reset. Old Navy's second-quarter net sales were $2.1 billion, down 4% from a year earlier, and comparable sales also fell 4%. Gap attributed the decline to expected pressure in women's seasonal assortments and an unanticipated slowdown in traffic. That combination points to both a product problem and a customer-acquisition problem, which are related but not interchangeable.

Retail Dive also cited analysts who questioned whether the slowdown could last longer than management expected. The publication reported that traffic weakened when marketing moved away from product-focused messages and stabilized after the company shifted back. Old Navy has meanwhile added an activewear subbrand and expanded into accessories and beauty, categories Gap has described as potentially higher margin.

Colombo's appointment places a specialist directly over the part of the assortment management already identified as weak. Francis is responsible for the broader brand, customer experience and operating response. That division of responsibility could speed decisions, but two leadership changes do not prove that demand has recovered.

For shareholders, the next evidence should come from comparable sales, traffic and merchandise margin. Better women's product without improved traffic would limit revenue recovery. More traffic produced by promotions could lift sales while pressuring margin. A healthier turnaround would show improvement in both measures, supported by fewer assortment misses and clearer product-led marketing.

Old Navy remains Gap Inc.'s largest brand, so the result can materially affect the group even if the personnel announcement itself does not change near-term earnings. The hire is best read as evidence that management recognizes the problem and is assigning new operators to it, not as evidence that the problem has been solved.