Old Navy Rewired Its Marketing After a Summer Traffic Miss — Everything Now Runs Through Denim

Summer marketing did not bring people through the door. Old Navy, the largest revenue contributor at Gap Inc., posted comparable sales of $2.1 billion for the quarter ended Aug. 1 — down 4% year over year. On the earnings call, Gap Inc. CEO Richard Dickson said summer marketing initiatives failed to deliver the anticipated traffic. The company also announced it was replacing Old Navy's CEO after several lagging quarters, describing the change as a planned transition.

Old Navy's Marketing Strategy Now Has One Axis: Denim

Dickson's word for it was "rewired." Heading into the critical fall months, the brand rebuilt its marketing plan around denim, the category that performed well in the first half. His summary line: "We are building Old Navy as a denim destination."

The first output landed in early August. The "Most Wanted Denim" campaign features Cardi B in wide-cut jeans alongside influencers and models including Quenlin Blackwell, Paloma Elsesser and Brooks Nader. Dickson told analysts it has already become the "most-viewed campaign in Old Navy's history," with significant traffic improvement through August. For back-to-school, the brand is also running a multipart content series with creator MrBeast.

The Real Move Is Narrowing, Not Star Power

The notable decision here is not the celebrity roster — it is the reduction in scope. The summer work spoke broadly about the brand. The fall work speaks about one category. Concentrating spend behind a product line that is already selling looks conservative, but for a brand with collapsed traffic it is the fastest route to a visible recovery signal.

Three Brands, Three Different Clocks

Gap Inc.'s quarter reads very differently depending on which brand you look at.

Athleta — Rewriting the Message Itself

Athleta, the group's smallest brand by revenue, posted another double-digit comparable sales decline. It used its fall 2026 campaign as the launchpad for a full marketing revamp: bolder purpose-driven messaging and visually distinct storytelling, with new ads spotlighting women excelling in traditionally male-dominated fields. CMO Erika Everett has said the brand is also investing more in social. The transformation work runs through Invisible Dynamics, the shop that previously helped Gap mount its comeback.

Gap — Eleven Straight Positive Quarters

The namesake brand is the one working. Comparable sales rose 10% in Q2, an eleventh consecutive quarter of growth, on a formula the brand has not changed: celebrity, music and pop culture nostalgia stacked to buy cultural relevance. A '90s-themed Hailey Bieber jean capsule sold out quickly and, per Dickson, created "a meaningful halo across the broader business." The fall campaign stars "Obsession" actor and new X-Men cast member Inde Navarrette with singer-songwriter Malcom Todd, dancing to Todd's cover of "Dancing on My Own."

What Marketers Should Take From This

First, diagnosing a traffic miss as a whole-brand problem leaves you with nothing you can fix this quarter. Old Navy scoped the problem down to a category and had new work in market within weeks. In a downturn, the most expensive move is attempting to redefine the brand.

Second, the recovery lever differs by what a brand already owns. Gap repeated a proven formula and bought eleven quarters with it. Athleta tore up the message. Old Navy moved spend toward what was already selling — the same logic behind Starbucks answering the "PSL is basic" meme head-on rather than arguing with it.

Third, org changes and campaign changes are one signal, not two. Old Navy's CEO transition and its marketing rewire were announced in the same breath — much like Kohl's merging marketing and digital under a first chief customer officer. In retail, underperformance usually moves people and structure before it moves messaging.