© Reuters. Old Navy CEO Out at Gap as Sales Falter, Shares Sink 11%
Gap Inc. (NYSE:) shares were trading more than 11% lower after-hours after announcing that Old Navy President and CEO Nancy Green is exiting the Old Navy business this week. With the announcement, the company also lowered its first-quarter sales guidance.
Sonia Syngal, the CEO of Gap Inc., will work closely with the Old Navy team until a new Brand President is identified through an external search.
Gap said it now sees first-quarter sales declines in the low to mid-teens versus its prior guidance of declines in the mid to high single digits.
Further, the company said it has taken a more aggressive approach to assortment balancing resulting in increased promotional levels primarily at Old Navy.
Shares of Gap were down 19% year-to-date before the large after-hours slide.
By Davit Kirakosyan