Here's what you need to know as the market kicks off March trading.
someone tell Baby Gap it's not their fault https://t.co/bxQAeZqrYu— AA (@allisona15) February 28, 2019
Old Navy will be run by current brand CEO Sonia Syngal, while the Gap portion of the business will continue to be lead by Art Peck and will include Athleta, Banana Republic and Hill City brands and a projected $9 billion in annual revenues. Gap, however, said it would close around 230 specialty stores over the next two years, a move that would result in annualized sales losses of $625 million and a pre-tax charge of as much as $300 million.
"In Old Navy, we have one of the fastest growing apparel retailers in the United States with the winning business model and an impressive runway for future growth, including capitalizing on opportunities like opening new stores and expanding into new product categories," Peck told investors on a conference call late Thursday. "The stand-alone company will have approximately $8 billion in annual revenue, and we'll be able to capitalize on this scale, broad consumer awareness and unique positioning to drive growth."
eBay's Rethinking Stubhub
eBay (EBAY - Get Report) said Friday it will launch a strategic review of its business, with a focus on StubHub and its online classifieds business, following pressure from activist investors such as Elliott Management and Starboard Value.
Ebay said it would also look at it existing businesses from an operating point of view, as well as looking at strategic alternatives for some of its various divisions, and will add two new people to its board of directors: Jesse Cohn of Elliot and Matt Murphy of Marvel Technology.
"Over the course of the last two months, we've met with a number of shareholders to understand their views," said CEO Devin Wenig. "The bottom line is that we all share common ground: we see tremendous opportunity ahead and want to see eBay's full potential realized over the long-term. The initiatives we are announcing today are the result of this constructive dialogue."