Business

Old Navy CEO leaves as parent company Gap cuts sales guidance


An employee hands a customer a shopping bag at an Old Navy Inc. store. in San Francisco.

David Paul Morris | Bloomberg | beautiful pictures

Gap Inc. announced Thursday that the CEO of its Old Navy division, Nancy Green, will be leaving the business this week.

Gap CEO Sonia Syngal will work closely with the Old Navy team as they seek to replace Green from the outside, the company announced in a press release.

Due to business challenges at Old Navy, Gap has also cut its net revenue growth outlook for the first quarter of fiscal 2022. The company is now forecasting a low-to-mid-range decline versus previous year, adjusted from previous forecasts that were called for mid-to-high single-digit declines.

Gap says it has taken a “more aggressive approach” to balance its inventory at Old Navy, which has resulted in higher promotional rates.

The retailer said it will provide an updated fiscal 2022 outlook when it reports quarterly results on May 26.

“As we look to capture the potential of Old Navy, particularly in light of the macroeconomic dynamics facing our industry, we believe now is the right time,” said Syngal. appropriate to introduce a new leader,” Syngal said, of Green’s departure.

She added that the company was looking for someone with “operational rigor and creative vision” to execute the retailer’s plan.

Gap stock fell more than 10% in extended trading on the news. Shares were down about 19% as of Thursday’s close.

Find the full press release from Gap this.

This is breaking news. Please check back for updates.



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