Shares of Gap rallied after the apparel company brought in a retail veteran to help boost flagging sales at its Old Navy brand.

The retailer on Thursday named Michael Francis as the next chief executive officer of Old Navy, its largest brand. Francis has a renowned retail career over several decades, notably helping to cultivate Target's cheap-chic image as chief marketing officer in the early 2000s, and later as a key consultant at Walmart for about a decade.

The stock climbed 15% to $23.90 in late trading. At market close shares had slid 19% year to date.

Francis had joined Gap earlier this year as head of marketing shared services for the parent company as well as chief customer officer for Old Navy, which he will now helm, effective Nov. 2. He succeeds Haio Barbeito, who will shift into an advisory role.

Francis will work alongside Gap CEO Richard Dickson to help revitalize the brand known for affordable, basic apparel that has been a drag on the overall company's results recently, including in the second quarter, which prompted Gap to cut its revenue guidance for the year.

Dickson said the company has work to do at Old Navy but understands the factors weighing on its performance. It's taken steps that are already improving the brand's results, he said.

"Certainly the quarter wasn't necessarily where we wanted it to be," Dickson said during a call with analysts. "The good news in terms of entering the third quarter, we're in a much better place from a product point of view."

Gap after the bell Thursday reported a decline in overall sales for the quarter ended Aug. 1, with sales at Old Navy, which represents more than half of total sales, down 4%. Executives had expected pressure from Old Navy's seasonal assortment for women, but hadn't anticipated traffic to slow, too, Dickson said, pointing to marketing shortcomings.

Old Navy's slump offset a 9% increase at Gap and a 1% gain at Banana Republic. Sales at Athleta, a smaller athleisure brand, fell 12%.

Old Navy's performance prompted the company to lower its overall sales growth forecast for the year to a range of 1% to 1.5%. It had previously expected growth of up to 2%.

Francis is looking to make Old Navy more relevant to shoppers and help return the brand to growth.

"We will continue to sharpen our customer focus, strengthen the brand's cultural relevance, enhance the customer experience across every touchpoint, and build on the momentum already underway," Francis said.

In the second-quarter, Gap reported a profit of $501 million, or $1.38 a share, compared with $216 million, or 57 cents a share, a year earlier.

Adjusted earnings per share, which exclude tariff refunds, were 52 cents. Analysts were looking for 48 cents.

Sales came in at $3.65 billion, below analyst estimates of $3.69 billion.

While it cuts its revenue outlook, Gap also bumped up its full-year adjusted earnings per share outlook to between $2.35 to $2.45, compared with $2.30 to $2.40 previously.

For the current third quarter, Gap expects revenue up 1.5% to 2.5%. Analysts are forecasting a 1% increase.