SAN FRANCISCO – The ailing US fashion group Gap has to look for a new top manager. Group CEO Art Peck has submitted his resignation, as the company announced on Thursday after US market close in San Francisco.
Until a solution was found, he would be assisted by Bobby Martin, a former Walmart manager with over 35 years of experience in the retail industry. The news did not turn out well in the market, the shares collapsed after the stock exchange by twelve percent.
Parallel to the departure of Pecks, who has been in the company for almost 15 years and as CEO since 2015, the targets for the 2019 financial year have also been revised downwards. It was a difficult third quarter, said CFO Teri List-Stoll. The company lowered its full-year earnings outlook to $ 1.70 to $ 1.75 from $ 2.05 to $ 2.15 per share. The fashion chain wants to find a back on a growth course with a corporate restructuring.
Gap, like many other US fashion chains, has been struggling for a long time and had already announced a split in February. After the division of the group, the sister brands Athleta, Banana Republic, Intermix and Hill City are to remain at Gap, while the second main brand Old Navy is put on its own.
(sda / dpa / reu)