The American clothing retailer that launched Old Navy in 1994 is Gap Inc.
Gap Inc. created Old Navy as a value-oriented chain with a separate identity from its namesake Gap stores. The first Old Navy locations opened in California in 1994, and the brand grew quickly through lower-priced clothing for families. Denim became one of its prominent categories, linking Old Navy to the wider jeans market without making it a specialist denim company.
Old Navy is sometimes mistaken for an independent jeans label because of its large denim business and standalone stores. It is instead one of Gap Inc.’s major brands, alongside Gap, Banana Republic and Athleta. The corporate relationship is the key distinction in this question.
The name was chosen for retail branding rather than because the company was founded as a naval or military outfitter. Old Navy’s growth helped Gap Inc. compete in the mass-market segment while keeping Gap positioned differently.