Gap said Thursday it plans close about 230 Gap specialty stores over the next two years as it works to restructure its business.
The retailer said it plans to split into two independent publicly traded companies, Old Navy and a yet-to-be named company, which will include its Gap brand, Athleta, Banana Republic, Intermix and Hill City.
The announcement came as the company reported disappointing sales for the holiday quarter. Its earnings, however, topped estimates.
In the fiscal fourth quarter ended Feb. 2, Gap said net income rose to $276 million, or 72 cents a share, from $205 million, or 52 cents a share, a year ago. Profits were higher than the 68 cents a share, analysts surveyed by Refinitiv were expecting.
The company’s sales fell to $4.62 billion from $4.78 billion a year ago. However, it was higher than the $4.69 billion analysts expected.
Gap shares surged more than 18 percent on the news.
This is a developing story. Please check back for updates.