// Gap CEO Art Peck to resign ahead of an anticipated spin-off of Old Navy
// Chairman and member of the retailer’s founding family, Robert J Fisher will replace Peck on an interim basis
// Peck has served at Gap for almost 15 years
Gap chief executive Art Peck is due to step down after sales at the retailer declined in the third quarter, ahead of an anticipated spin-off of Old Navy.
Peck is due to resign after “a brief transition” and will be replaced on an interim basis by Robert J Fisher, a member of the retailer’s founding family and chairman of the business.
The resignation came as Gap reported a fall in third-quarter like-for-like sales.
Peck has served at Gap for almost 15 years and was promoted to chief executive in 2015.
However, the retailer’s performance has declined during his leadership.
“Under Art’s tenure, we have made progress investing in capabilities that bode well for the future such as expanding the omnichannel customer experience and building our digital capabilities,” Fisher said.
“As the board evaluates potential successors, our focus will be on strong leadership candidates with operational excellence to drive greater efficiency, speed and profitability.
“In the meantime, we will continue to focus on leveraging the power of our brands and the talented teams that lead them to improve execution and better position the portfolio for growth.”
Meanwhile, Fisher has held positions including interim president and chief executive, and has been on the board since 1990.
In its third quarter, Gap reported its comparable sales fell seven per cent at the eponymous business, down three per cent at Banana Republic and down four per cent at Old Navy.
Gap chief financial officer Teri List-Stoll said: “This was a challenging quarter, as macro impacts and slower traffic further pressured results that have been hampered by product and operating challenges across key brands.
“We have tremendous confidence in our brands and the talented organisation that supports them, and we are seeing progress in some key areas,” she said.
“However, there is more work to do to leverage the capabilities we have invested in and deliver the profitable growth we know these brands are capable of delivering.”