Gap Inc. announced Thursday that the CEO of its Old Navy division, Nancy Green, is leaving the business this week.
In light of execution challenges within its Old Navy business, Gap also slashed its outlook for net sales growth in the first quarter of fiscal 2022. It’s now projecting low- to mid-teens declines compared with the prior year, adjusted from a prior forecast that called for mid- to high-single-digit declines.
Gap also said it has taken a “more aggressive approach” to balancing its merchandise assortment at Old Navy, which has resulted in higher promotional levels.
The retailer said it will provide an updated fiscal 2022 outlook when reports quarterly results on May 26.
Gap shares fell more than 8% in extended trading on the news.
Find the full press release from Gap here.
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