An employee hands a shopping bag to a customer at an Old Navy Inc. store in San Francisco.
David Paul Morris | Bloomberg | Getty Images
Gap Inc. announced Thursday that Old Navy Division CEO Nancy Green is leaving the company this week.
Gap chief executive Sonia Syngal will work closely with the Old Navy team as it searches externally for Green’s replacement, the company said in a press release.
Given the execution challenges at the Old Navy business, Gap has also lowered its guidance for net sales growth in the first quarter of fiscal 2022. It now forecasts a decline in the low to mid-teens year-on-year, restated from an earlier forecast calling for declines in the mid- to high-single digits.
Gap said it took a “more aggressive approach” to balancing its inventory at Old Navy, which resulted in higher advertising levels.
The retailer said it will provide an updated fiscal 2022 outlook when it reports quarterly results on May 26.
“As we seek to leverage Old Navy’s potential, particularly amid the macroeconomic dynamics our industry is facing, we believe now is the right time to hire a new leader,” Syngal said of Green’s departure .
She added that the company is looking for someone with “operational rigor and creative vision” to execute 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 through Thursday’s close.
Gap’s full press release can be found here.
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