In response to mounting sales pressures and with parent company Gap Inc. looking to leverage its best-performing categories, Old Navy has introduced a fresh activewear subbrand targeting the thriving U.S. athleisure market.
Old Navy Sport Debuts with Refined Collection
Gap Inc. unveiled Old Navy Sport on Tuesday, officially launching the activewear line as a standalone subbrand. This repositioning unifies the brand’s assortment of performance apparel under a single identity, complete with enhanced branding, contemporary styles, and a more prominent presence on retail floors and online storefronts.
Highlighting affordability and practicality, the new Old Navy Sport collection features “refreshed seasonal styles, updated colors and modern silhouettes.” Customers will find the complete line both online and in all Old Navy locations, with 42 selected stores introducing immersive “shop-in-shops” to further showcase the brand’s activewear range.
Seeking Growth Amid Market Shifts
Although 2023 brought sales hurdles and a CEO transition, Old Navy has maintained its rank as one of the top five players in the U.S. activewear category, according to Circana data referenced by Gap Inc. The brand’s resilience is driven by its consistently strong active and denim sectors, especially as other categories like summer casual dresses lag behind. During Monday’s Goldman Sachs Global Consumer and Retail Conference, Gap Inc. CEO Richard Dickson repeated the company’s commitment to supporting Old Navy’s activewear, denim, kids, and baby lines as key drivers of growth and marketing efforts for the second half of the year.
In contrast, Gap Inc.’s Athleta and rival Lululemon are contending with a tougher landscape. According to Jessica Ramírez, co-founder of The Consumer Collective, leadership changes and fiercer competition are challenging both brands as they attempt comebacks with new Nike alumni—Maggie Gauger at Athleta and Heidi O’Neill at Lululemon—guiding their turnaround strategies.
Shifting Consumer Preferences and Competitive Pressures
Analysts emphasize that heightened competition is shaping the activewear market rather than any softening in demand. Led by Ramírez, The Consumer Collective’s latest data shows 70% of consumers have a greater focus on health compared to a year ago, driving increases in participation across activities like running, cycling, and racket sports. The growing uptake of GLP-1 medications is also correlating with rising physical activity rates.
Ramírez points to Old Navy’s sharp price point as a key reason for its sustained high sales in activewear, noting that launching a subbrand allows customers to “identify it as something unique from a retailer,” strengthening brand loyalty. This model has already delivered results for competitors such as Dick’s Sporting Goods’ Calia brand and Target’s proprietary activewear offerings.
With heightened branding efforts spanning OldNavy.com, the mobile app, in-store experiences nationwide, and a new @OldNavySport social handle, Old Navy is investing in visibility and direct engagement in the activewear sector. Ramírez notes the importance for brands to stand out as health-focused consumers drive category momentum: “The choice is there. The consumer is there because they are working out. So it’s almost up to the brand.”
By rolling out Old Navy Sport, Gap Inc. is strengthening its presence within a robust growth segment, aiming to differentiate itself and deliver distinctive value and performance for today’s American activewear consumer.