Late February last year, Gap announced its plans to create two independent publicly traded companies: spinning off Old Navy and a yet-to-be-named company.
Shares soared 18% on the news.
Tonight, after hours, Gap has issued a statement that it is scrapping plans to spin off its Old Navy brand.
"The work we've done to prepare for the spin shone a bright light on operational inefficiencies and areas for improvement," said Gap chief executive Robert Fisher, adding that the company has "learned a lot" and intends to operate in a manner that "empowers our growth brands, Old Navy and Athleta."
Shares soared 16% after hours...
This is the 'market' you are trading in...
So... a 360-degree roundtrip, with the company back right where it started, but in the process it gained over 30% on two mutually offsetting events. And that's why we give thanks for algos and millennial "investors" every day.