Hello Omni Talk Fans! Just when we all were beginning to think it was time to crown Richard Dickson as the new “merchant prince,” Gap takes a bit of a tumble.
In today’s Retail Daily Minute:
- Gap Inc. beats on earnings but Old Navy posts its first negative comp quarter since 2023, and gets a new CEO in Michael Francis, effective November 2nd.
- Walmart expands restaurant delivery beyond in-store Subway locations, touting strong crossover with its Express Delivery membership growth.
- Planalytics forecasts a regionally split Labor Day weekend, with heat driving demand in the Midwest and Mid-Atlantic and cooler, wetter conditions out West.
Plus, Producer Ella’s latest Product Pick of the Week (I am starting to think she really values her sleep), and to honor just how cool I think Walmart expanding restaurant delivery is, I give you a quote from a movie character that moonlights as a pizza delivery driver.
👇 Listen now
Today’s Top Headlines
1. Gap Q2 Sales Slip; Old Navy Taps Michael Francis as New Chief
Gap Inc. posted mixed Q2 results: net sales fell 2% to $3.65 billion, missing estimates, yet net income jumped to $501 million and adjusted EPS beat forecasts. Old Navy comparable sales dropped 4%, its first decline since 2023, while the Gap brand rose 10%. Michael Francis will take over as Old Navy CEO effective Nov. 2. (Read More)
2. Walmart Pushes Restaurant Delivery Beyond Its Own Store Walls
Walmart is extending Express Delivery beyond its own aisles into restaurant meals, starting with Subway, its largest in-store tenant at roughly 1,400 locations. Orders arrive in 30 minutes or less, alone or with groceries, for a flat fee. SVP Greg Cathey says delivery from restaurants outside Walmart stores could follow. (Read More)
3. Labor Day Weather Split: Ice and Suncare East, Apparel in West
Planalytics’ Labor Day outlook points to a split U.S. weather pattern: heat across the Midwest and South lifts demand for ice, cold drinks and suncare, while cooler Western and Northeastern conditions favor apparel and back-to-school. Rain could dent foot traffic; dry South Central markets should support holiday spending. (Read More)
4. Bath & Body Works E-Commerce Grows for First Time Since 2021
Bath & Body Works’ digital business grew in Q2 for the first time since 2021, improving four percentage points from Q1 as tech and engagement investments lifted conversion. CEO Daniel Heaf cautions that one quarter isn’t a turnaround, but expects channel gains through 2027. Overall Q2 net sales fell 2.3% to $1.5 billion. (Read More)
5. Ulta Beauty Raises Its Full-Year Outlook After Q2 Sales Rise 8.9%
Ulta Beauty raised its full-year outlook after Q2 net sales rose 8.9% to $3.04 billion and comparable sales gained 3.8%, both topping analyst estimates. Diluted EPS climbed 13.3% to $6.55. The retailer now sees fiscal 2026 sales growth of 6.7% to 7.2% and EPS of $28.70 to $29, though shares slipped in after-hours trading. (Read More)
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Producer Ella’s Product Pick Of The Week
Be careful out there,
— Chris and the entire Omni Talk team
Omni Talk® is the retail blog for retailers, written by retailers. Chris Walton founded Omni Talk® in 2017 and have quickly turned it into one of the fastest growing blogs in retail.