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Like a smattering of rhinestones on a pair of skinny jeans, Old Navy has emerged as the unexpected sparkle in Gap performance these days. And while the low-cost retailer’s turnaround story is rich in messaging about merchandising, it's equally stocked with lessons in loyalty marketing. Sales at Old Navy rose to $1.4 billion in the fiscal first quarter, from $1.35 billion in the same period a year before. In 2014, the low-cost Old Navy rang up almost $6 billion in sales, nearly as much as Gap and Banana Republic combined.
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