Gap and Old Navy are splitting up

New York (CNN Business)Gap and Old Navy have been trending in opposite directions for years. So they’re finally splitting up. Wall Street cheered the decision:Gap (GPS) 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 …