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Gap and Old Navy have been trending in opposite directions for years. So they're finally splitting up.Gap said Thursday that it would break into two companies. One of the companies will contain Old Navy, while the other yet-to-be-named business, currently called NewCo, will comprise Gap, Banana Republic and other brands, including Athleta and Hill City.The move is designed to allow Old Navy — which has grown to billion in annual sales since it opened its first store in 1994 — to expand on its own. Meanwhile, the company can consolidate its older brands like Gap and Banana with its newer ones like Athleta and Hill City. NewCo will have about billion in annual sales."We think the best way for each company to grow and meet the evolving needs of our customers is to allow them to pursue tailored strategies separately," Gap CEO Art Peck told analysts Thursday. Peck will lead NewCo. Sonia Syngal, CEO of Old Navy, will keep running that company.Wall Street cheered the decision: Gap stock was up 25% in after-hours trading.The separation is a tale of two vastly different businesses: Old Navy has thrived in recent years, and sales at stores open at least a year grew 3% in 2018. Meanwhile, the Gap has struggled — its sales fell 5% last year. Banana Republic has been closing stores, which has helped the company improve sales."Old Navy continues to outpace Gap brand and Banana Republic, and is one the fastest-growing major apparel brands," said Christina Boni, analyst at Moody's.The Gap, which was founded in 1969, used to be the coolest brand in retail: It rode the mall boom in the back half of the 20th century, and its logoed sweatshirts and turtlenecks won over everyone from teens to moms and celebrities like Sharon Stone.But the brand fell out of touch with the Baby Boomers who grew up on the brand, and it failed to attract the Millennials who drive fashion trends today. Retailers such as Levi's, Target and fast-fashion sellers H&M and Zara lured away Gap's denim shoppers with cheaper prices and trendier styles.The company has been talking for a while about how to make the Gap a healthy part of the business again. In November, Peck described Gap's store count as unprofitable. As of the end of last quarter, there were 1,242 Gap stores worldwide. 758 of them were in North America.On Thursday, the company said it will close 230 Gap stores over the next two years as part of its plan to "revitalize" the Gap brand. The closures will affect "specialty" Gap stores, which includes mall-based stores.Most of those stores will be in North America, Peck told analysts Thursday. Chief financial officer Teri Stoll added that the company focused on stores that were not delivering, were in the "wrong locations" or were not a "strategic fit."About 130 of those closures will happen this year, according to Gap. The company also plans to open Old Navy and Athleta locations. Athleta, which will be part of the new Gap company, is a women's athleisure chain that has been a success. Hill City launched last year as Gap's men's athleisure brand.Gap thinks it will save between 0 million and 0 million before taxes over the next two years because of its closure plans, according to a securities filing. It expects to finish splitting the companies in 2020.But some analysts questioned why promising brands such as Athleta and Hill City were included in NewCo with the struggling Gap brand."This could have been an opportunity for a fresh start for Gap," said Bob Phibbs, CEO of consultancy Retail Doctor. "It's simply putting the NewCo brands though the ringer for another cycle of rinse and repeat."The-CNN-Wire? & ? 2019 Cable News Network, Inc., a Time Warner Company. All rights reserved. 3771

Georgia lawmakers' attempt to get kids some daily exercise on school playgrounds has been shut down by Gov. Brian Kemp.Despite research that suggests children can benefit from a break from schoolwork, Kemp has vetoed 229

House Ways and Means Committee Chairman Richard Neal has issued subpoenas for President Donald Trump's tax returns, the committee told CNN on Friday, an escalation in 179

General Motors’ self-driving car company will attempt to deliver on its long-running promise to provide a more environmentally friendly ride-hailing service in an unorthodox vehicle designed to eliminate the need for human operators to transport people around crowded cities.The service still being developed by GM’s Cruise subsidiary will rely on a boxy, electric-powered vehicle called “Origin” that was unveiled late Tuesday in San Francisco amid much fanfare. It looks like a cross between a mini-van and sports utility vehicle with one huge exception — it won’t have any steering wheel or brakes. The Origin will accommodate up to four passengers at a time, although a single customer will be able summon it for a ride just as people already can ask for a car with a human behind the wheel from Uber or Lyft.For all the hype surrounding the Origin’s unveiling, Cruise omitted some key details, including when its ride-hailing service will be available and how many of the vehicles will be in its fleet. The company indicated it will initially only be available in San Francisco, where Cruise has already been offering a ride-hailing service that’s only available to its roughly 1,000 employees.By eliminating the need for a human to drive, Cruise theoretically will be able to offer a less expensive way to get around — a goal already being pursued by self-driving car pioneer Waymo, a Google spinoff that has been testing robotaxis in the Phoenix area for nearly three years.Cruise had planned to have a robotaxi service consisting of Chevrolet Bolts working without human backup drivers by the end of 2019, but moved away from that last year after one of Uber’s autonomous test vehicles ran down and killed a pedestrian in the Phoenix suburb of Tempe, Arizona, during 2018.Still aware of the fallout from that deadly crash, Cruise is promising “superhuman performance” from the Cruise, which GM hopes to manufacture at half the price of comparable vehicles using fuel-combustion engines. GM also expects to announce where the Origin will be made within the next few weeks, Cruise CEO Dan Amman said.The Origin won’t be sold to consumers though. “It is not a product you can buy, but an experience you share,” Amman said.The Origin represents another significant step for Cruise, which had only 40 employees when GM bought it in 2016 as part of its effort to catch up in the race to build cars that can drive themselves. Since then, Cruise has attracted more than billion from investors, including .75 billion from Honda and .25 billion from Japanese tech investment firm SoftBank. Honda also helped develop the Origin. GM currently values Cruise at billion, fueling speculation that the subsidiary may eventually be spun off as a publicly traded company.Whenever Cruise’s ride-hailing service makes its debut, it will still be chasing Waymo, whose work on self-driving car technology began inside of Google more than a decade ago. Waymo’s Phoenix-area service already has given more than 100,000 rides, according to the company. It expanded beyond the test phase service 13 months ago with a ride-hailing app that now has about 1,500 active monthly riders, Waymo says.By comparison, ride-hailing leader Uber now boasts about 103 million active monthly users with a service that relies on human drivers — a dependence that is the main reason the company has been losing money throughout its history. Despite the fatal 2018 crash that stoked the public’s worst fears about self-driving cars, Uber is still trying to build a fleet of robotic taxis as part of its question to become profitable.Tesla CEO Elon Musk has also pledged that his company’s electric cars will be able to drive themselves without a human behind the wheel before the end of this year so they can moonlight as taxis when their owners don’t need the vehicles, but industry analysts doubt that promise will come to fruition. 3921

For the first time in the history of the platform, Twitter has issued a fact check alert on a presidential tweet. On Tuesday, Twitter flagged several tweets containing misleading information about claims President Donald Trump made on Tuesday involving mail-in ballots. Twitter has come under fire in recent days for allegedly not applying its conduct standards on tweets sent by the president. The controversy was fueled by a conspiracy pushed by the president about prominent MSNBC host Joe Scarborough and the death of a former congressional staffer. The now deceased congressional staffer worked for Scarborough when he was a member of Congress. According to an autopsy released from the 2001 death, the staffer died when she fell and hit her head. The family of the deceased staffer called on Twitter to delete the tweets, claiming that had the tweets been sent by anyone other than the president, they would have been kicked off the platform.In a response to 977