Old Navy is doubling down on athleisure.
WWD has learned that Old Navy will later this year launch a new format focused on athleisure, capitalizing on a growing category where it already does huge volume.
“This will be a new subbrand,” said one source who chose to rename anonymous. “They’re calling it Old Navy Sport.”
The source suggested that leggings, sweats, sport bras and T-shirts could be part of the assortment, but it’s unclear whether much in the way of performance wear will be included. The source also said that Old Navy is considering a free-standing athleisure format. However, Old Navy declined to comment on any aspect of the strategy.
“We don’t comment on rumor or speculation,” said a spokesperson for parent company Gap Inc.
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The retailer also operates Gap brand and Banana Republic as well as Athleta, which sells activewear and athleisure, but at a higher price point than Old Navy and with a different customer base. Gap Inc. has been working to turnaround negative sales trends at Athleta, while Old Navy has been a steady performer.
The move is an attempt to elevate and rebrand Old Navy’s athleisure wear. Gap Inc. has said that Old Navy is the nation’s fifth largest retail of athleisure, but does not break out volume on the category. Other retailers that generate large volumes in athleisure include Walmart, Target, Lululemon, Nike, Under Armour, Adidas and Puma. Alo Yoga and Vuori are two fast-growing premium athleisure labels.
Last year, Old Navy, seeking to grab a greater share of the hotly contested activewear market, launched StudioSmooth, a collection rooted in a new fabrication that was under development for three years.
The StudioSmooth fabric is a blend of 82 percent nylon and 18 percent spandex, providing what Old Navy executives described as “a buttery-soft feel with light compression.” They maintained that StudioSmooth is comparable to more expensive leggings in the category, yet offered at a fraction of the price.
Old Navy also sells PowerSoft Sculpt which offers compression in “a peachy-smooth,” sweat-wicking fabric, with a contoured waistband that holds you in for extra support. The leggings have been strong sellers.
As Horacio Barbeito, president and chief executive officer of Old Navy, told WWD previously, “Our customers want more from us in activewear, and we’re committed to delivering in new and innovative ways.”
Barbeito said Old Navy has a strategy “to give more room to categories that have been growing faster than the average. Active is an example.”
Old Navy’s net sales in 2025 rose 3 percent to $8.7 billion; comparable sales were up 3 percent. The brand’s price value equation is resonating with consumers as Old Navy continues to win with strategic categories and across a wide range of income levels.
