Old Navy Thrives After a Style-Conscious Rebirth

For years, Stefan Larsson was Gap’s worst nightmare, as he led H&M’s dizzying expansion in the United States with a combination of designer chic and rock-bottom prices. Three years ago, Gap Inc. hired him and gave him its most challenging brand, Old Navy. Since his arrival, Larsson has led a striking turnaround at the low-cost label, transforming Old Navy from a butt of jokes to its parent company’s crown jewel. Last year, Old Navy took in almost $6 billion in sales in the United States — almost as much in sales as the Gap and Banana Republic brands put together — and made up 40 percent of the company’s global revenue.