When new Gap CEO Richard Dickson took over in 2023, he began a refresh of the company that included bringing in designer Zac Posen to oversee the company’s creative direction. Last week, Posen helped launch GapStudio, a new sub-brand with exclusive drops and a more premium price point.
Now, Posen and Gap are bringing the same premium eye to a new line for Old Navy, another Gap subsidiary. Launching on April 21, The Occasion is a new line of occasionwear, with the first collection consisting of 11 dresses and one matching skirt and top. The pieces come in a variety of materials like chiffon and silk and are targeted toward events like proms, weddings, parties and other special occasions.
According to Sarah Holme, Old Navy’s head of design and product development, the new line was inspired by an old-fashioned technique: listening to the customer. Old Navy is already known for its dresses — being ranked in the top three for women’s dresses by Circana in 2024 — and its customers were asking for more elevated, special occasion versions of existing products.
“There is not one designer here who isn’t obsessed with engaging our customer and hearing what they want,” Holme said. “And we gauge what they want through a mix of channels. Social media, especially TikTok, is a big one for deep levels of discourse. On our website, there’s a customer feedback option, and it’s per style. There’s a huge amount of feedback we take in every day through the website.”
Unlike GapStudio, which has prices reaching nearly $250, The Occasion is priced more modestly. The dresses range from $24.99-$64.99, in line with Old Navy’s generally lower prices than Gap.
“We want to bring elevated glamour to her everyday life, and we’re uniquely able to do that for everyone, at different price points in different ways,” Posen told Glossy. “GapStudio is one expression of that mission, and The Occasion is another. Old Navy customers already trust us for dresses, and The Occasion is an opportunity to dress women for life’s most important moments.”
The turnaround of Gap Inc., which began in 2023, has been paying off dividends. In its most recent earnings in early March, Gap reported sales that blew past expectations. Its last-quarter net income was $206 million, up from $185 million in the same period a year before.
Haio Barbeito, CEO of Old Navy, told Glossy he’s aware that there’s a lot of competition in the occasionwear space. Not only can customers buy from a number of similarly priced brands, but they can also rent. One way Old Navy is hoping to compete is by making occasionwear that’s intentionally versatile, in patterns and materials that can be worn beyond a single event.
For Barbeito, the key to Old Navy’s continued success will be agility. Old Navy is Gap Inc.’s largest brand by revenue, with sales of $2.2 billion last quarter.
“The key is to have our ear to the ground on culture and the customer,” Barbeito said. “You’ve heard of moving at the speed of culture? We’re moving at the speed of the customer. So that’s keeping in touch with what’s happening with music festivals, sports and entertainment. When we think about launching categories, we think about what is surrounding the customer, what trends are there and what would serve them best.”
