CompaniesNews

Gap Scraps Spin-off Plans of Old Navy, Focuses on Recovering Sales

Retard China Progress Balances Trade Deal Optimism, Oil Stands Agency The step came as a surprise as two months ago, the company had stuck to its plan to separate regardless of several analysts calling for the plan to be canned due to weak sales and the sudden exit of CEO Art Peck.

Peck revealed the plan in February 2019 when Old Navy was a brilliant spot for the company, which was battling out-of-fashion apparel at its Gap brand.

Nevertheless, sales for Old Navy have decreased in recent quarters, raising doubts about the model’s value as a separate player.

The company Thursday also stated that Mark Breitbard, head of Banana Republic, will lead the Gap on an interim basis after the sudden exit of CEO Neil Fiske.

The firm is searching for a permanent CEO, whose primary process, following Craig Johnson, president at retail consultancy Customer Growth Partners, will be to repair the big three manufacturers – Gap, Old Navy, and the Banana Republic.

Gap stated same-store sales for 2019 would be on the higher end of its prior scope, but would still drop from a previous year as brick and mortar retailers lose holiday customers to online competitors.

It adjusted 2019 earnings to be moderately above its prior vision of $1.70 to $1.75 a share.

Tags
Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close