Gap CEO steps down amid slumping sales
Published on: Saturday, November 09, 2019
By: AP
Photo Source: AP
NEW YORK: Gap’s announced Thursday that CEO Art Peck is stepping down as the company struggles to turn around a long-standing sales slump.The San Francisco-based retailer also slashed its earnings outlook for the year as sales at the Gap, Banana Republic and Old Navy fell in the most recent quarter.
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The company’s stock tumbled 7pc to $16.75 in after-hours trading following the announcement. The shares were trading at around $41 when Peck took the CEO spot in early 2015.
Effective immediately, Robert J. Fisher, Gap’s non-executive chairman of the board, will serve as president and CEO on an interim basis. Fisher is the son of Gap’s co-founders Donald and Doris F. Fisher.
“As the board evaluates potential successors, our focus will be on strong leadership candidates with operational excellence to drive greater efficiency, speed and profitability,” he said in a statement.Stay up-to-date by following Daily Express’s Telegram channel.
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Like many mall-based clothing chains, Gap is struggling to turn itself around as shoppers go online or to discounters like T.J. Maxx for their clothing. But Gap, which defined casual dressing in the 1990s, has also long struggled with its own deep-rooted problems – its offerings have failed to stand out from that of its rivals. – AP
