Gap Inc said on Wednesday it will begin to franchise Old Navy, its biggest unit, next year in certain international markets.
Ahead of an investor meeting, Gap also said it will consider expanding in China by adding company-operated Old Navy and Banana Republic stores in the Southeast Asian nation. The apparel company added it will expand its digital footprint by creating a system with capabilities such as ship-from-store, find-in-store and reserve-in-store.
Gap said it will continue to build its online and physical store omni-channel platform, including shipping online orders from stores.
"Gap Inc. is determined to build upon its product and revenue momentum in 2012," Chief Executive Glenn Murphy said. " Over the next five years, key to our continued success will be pushing the envelope further to make shopping seamless to customers through our digital strategy, while seizing the opportunity for Old Navy in many untapped international markets."
Gap's earnings have increased in the last three consecutive quarters amid the company's recent improvements in North America.
The retailer is in the midst of a turnaround effort, looking to rein in an overextended store network in the U.S. and resolve merchandising struggles. It has also been expanding abroad, now operating stores in more than 40 countries, up from eight countries in 2006. In December, it said it would open its first standalone Gap store in Brazil.
