Old Navy CEO to exit as parent company Gap cuts sales guidance

Old Navy CEO to exit 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 | Getty Images

Gap Inc. announced Thursday that the CEO of its Old Navy division, Nancy Green, is leaving her post this week.

Gap Chief Executive Sonia Syngal will work closely with the Old Navy team as it searches externally for Green’s successor, the company said.

In light of what it called “execution challenges” within its Old Navy business, Gap also slashed its outlook for net sales in the first quarter of fiscal 2022. It’s now projecting low- to mid-teens declines compared with the prior year, adjusted from an earlier forecast that called for mid- to high-single-digit declines.

News of Green’s abrupt departure comes as Gap struggles to weather continued logistics disruptions and rising inflation that threatens to curtail consumer spending.

A snarled supply chain has been particularly hard on its Old Navy division, which targets a lower-income consumer, the company said when it reported quarterly results in early March. Delayed shipments have meant the retailer hasn’t had enough merchandise on hand to meet shopper demand in some instances.

In its fiscal fourth quarter, same-store sales at Old Navy were flat compared with 2019 levels.

Gap said Thursday that it has also taken a “more aggressive approach” to balancing its merchandise assortment at Old Navy, which has resulted in higher promotional levels. It didn’t further clarify the issue, but more markdowns are likely weighing on the retailer’s profits.

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

“As we look to seize Old Navy’s potential, particularly amidst the macroeconomic dynamics facing our industry, we believe now is the right time to bring in a new leader,” Syngal said, regarding Green’s departure.

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

Gap shares fell nearly 11% in extended trading on the news. The stock is down about 19% year to date as of Thursday’s close.

Find the full press release from Gap here.



Source

Candy giant Ferrero adds American twists to Nutella, Ferrero Rocher to fuel U.S. growth
Business

Candy giant Ferrero adds American twists to Nutella, Ferrero Rocher to fuel U.S. growth

Containers of Nutella hazelnut spread made by the Ferrero company is displayed on March 27, 2024 in San Anselmo, California.  Justin Sullivan | Getty Images News | Getty Images Ferrero North America is adding peanuts to its Nutella, turning its Ferrero Rocher spheres into squares and adding Dr Pepper flavor to Tic Tacs, all in […]

Read More
Bill Gates doubles giving to 0 billion, says philanthropists can’t cover government cuts
Business

Bill Gates doubles giving to $200 billion, says philanthropists can’t cover government cuts

Bill Gates arrives for a press conference to launch the Global Polio Eradication Initiative at the European Commission’s Berlaymont headquarters in Brussels on October 11, 2023. Simon Wohlfahrt | Afp | Getty Images Billionaire Bill Gates announced on Thursday that he will double his charitable giving to $200 billion over the next 20 years. In […]

Read More
Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook
Business

Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

Justin Sullivan | Getty Images News | Getty Images Krispy Kreme stock plunged 24% on Thursday morning after the doughnut chain said it is “reassessing” its rollout with McDonald’s and pulled its full-year outlook in part due to economic “softness.” Krispy Kreme is not planning to launch its doughnuts in any additional McDonald’s locations in […]

Read More