Gap Seeks New Leader for Flagship Brand -- WSJ
February 21 2018 - 2:02AM
Dow Jones News
By Khadeeja Safdar and Cara Lombardo
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 21, 2018).
Gap Inc. is searching for a new leader of its flagship brand as
it looks to jump-start sales.
The apparel retailer said Tuesday that Jeff Kirwan has resigned
after three years as Gap brand president and chief executive. Brent
Hyder, Gap executive vice president of global talent and
sustainability, will serve as interim brand president.
Shares of the company, which also owns Old Navy and Banana
Republic, fell 5% to $31.62 on Tuesday.
"While I am pleased with our progress in brand health and
product quality, we have not achieved the operational excellence
and accelerated profit growth that we know is possible at Gap
brand," Gap Inc. Chief Executive Art Peck said in prepared remarks.
"As we move into the brand's next phase of development, Jeff and I
agreed it was an appropriate time for a change in leadership."
The Gap brand has long struggled to recapture the magic of its
1990s glory days. Mr. Kirwan, a company veteran, was promoted by
Mr. Peck to reinvigorate the iconic brand after serving as Gap's
president for China. Under his leadership, the retailer focused on
fabric innovations, sizing issues and supply-chain efficiency. The
brand last year launched a 1990s-inspired fashion collection.
Wardrobe basics have evolved since Gap's heyday, with many
customers swapping out denim for yoga pants. In recent years, the
brand has lost market share to fast-fashion rivals such as H&M
and Zara. Old Navy, the company's budget brand and biggest division
by sales, has been a bright spot, helping to shore up companywide
results even as Gap and Banana Republic have struggled.
The parent company has been shifting its footprint accordingly.
Last year, it announced plans to close about 200 Banana Republic
and Gap stores over the next three years, while opening new Old
Navy and Athleta locations.
Gap brand same-store sales dropped in the first two quarters of
the retailer's just-ended fiscal year and rose slightly in its
third quarter. Analysts expect the brand to show a 0.2% decline in
same-store sales when the company reports its fourth-quarter
results next week.
Write to Khadeeja Safdar at khadeeja.safdar@wsj.com and Cara
Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
February 21, 2018 02:47 ET (07:47 GMT)
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