An worker arms a buyer a buying bag at an Outdated Navy Inc. retailer in San Francisco.
David Paul Morris | Bloomberg | Getty Photographs
Gap Inc. introduced Thursday that the CEO of its Outdated Navy division, Nancy Inexperienced, is leaving the enterprise this week.
Hole Chief Government Sonia Syngal will work carefully with the Outdated Navy group because it searches externally for Inexperienced’s alternative, the corporate introduced in a press launch.
In gentle of what it referred to as “execution challenges” inside its Outdated Navy enterprise, Hole additionally slashed its outlook for internet gross sales progress within the first quarter of fiscal 2022. It is now projecting low- to mid-teens declines in contrast with the prior 12 months, adjusted from an earlier forecast that referred to as for mid- to high-single-digit declines.
Information of Inexperienced’s abrupt departure comes as Hole struggles to climate continued logistics disruptions and rising inflation that threatens to curtail shopper spending.
A snarled provide chain has been significantly exhausting on its Outdated Navy division, which targets a lower-income shopper, the corporate mentioned when it reported quarterly results in early March. Delayed shipments have meant the retailer hasn’t had sufficient merchandise readily available to fulfill shopper demand in some cases.
In its fiscal fourth quarter, same-store gross sales at Outdated Navy had been flat in contrast with 2019 ranges.
Hole mentioned Thursday that it has additionally taken a “extra aggressive method” to balancing its merchandise assortment at Outdated Navy, which has resulted in greater promotional ranges. It did not supply additional readability on the difficulty, however extra markdowns is probably going weighing on the retailer’s income.
Hole mentioned it’ll present an up to date fiscal 2022 outlook when it stories quarterly outcomes on Might 26.
“As we glance to grab Outdated Navy’s potential, significantly amidst the macro-economic dynamics dealing with our business, we consider now could be the suitable time to herald a brand new chief,” Syngal mentioned, relating to Inexperienced’s departure.
She added that the corporate is in search of somebody with the “operational rigor and inventive imaginative and prescient” to execute on the retailer’s plan.
Hole shares fell almost 11% in prolonged buying and selling on the information. The inventory is down about 19% 12 months up to now as of Thursday’s shut.
Discover the complete press launch from Hole here.