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 the business this week.
Gap Chief Executive Sonia Syngal will work closely with the Old Navy team as the company searches externally for Green’s replacement, the company announced in a press release.
In light of execution challenges within its Old Navy business, Gap also slashed its outlook for net sales growth 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.
Gap said it has taken a “more aggressive approach” to balancing its merchandise assortment at Old Navy, which has resulted in higher promotional levels.
The retailer 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 macro-economic 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 more than 10% 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.
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