CEO out at Old Navy
Gap Inc. has made a big change at the top of one of its brands.
In an unexpected announcement, the apparel retailer said that Nancy Green, president and CEO of Old Navy, will step down this week. Green was named chief executive of the brand in October 2020 after serving in the position on an interim basis since March.
Green is a Gap Inc. veteran, holding multiple positions at Gap and Old Navy over the years. Beyond Gap Inc., Green has served as CEO of Shabby Chic. She also ran the Pottery Barn main division of Williams-Sonoma as general manager and executive VP from 2003-2007.
Old Navy has been a major contributor to Gap Inc.'s growth in recent years. But in reporting its fourth-quarter results in March, the company said the division was being hit hard by ongoing supply chain disruptions. Gap said it was expecting to open about 30 to 40 Old Navy stores in 2022.
“As we look to seize Old Navy’s potential, particularly amidst the macro-economic dynamics facing our industry, we believe now is the right time to bring in a new leader with the operational rigor and creative vision to execute on the brand’s unique value proposition. said Gap Inc. CEO Sonia Syngal. “I want to thank Nancy Green for her decades of leadership and passion for our brands and customers, as well as the communities we serve.”
The company said that while an external search is underway, Syngal will work closely with the Old Navy team, “which combines new perspectives with strong tenure, to lead through this transition until a new brand president is identified.”
In separate news, Gap Inc. cut its first-quarter guidance, citing the “macro-economic dynamics” as well as the execution challenges at the Old Navy brand. The company now expects net sales growth guidance to approximately low to mid-teens year-over-year declines from its prior guidance of mid to high single digit year-over-year declines.
Gap said has also taken a more aggressive approach to assortment balancing resulting in increased promotional levels primarily at Old Navy. The company will be providing updated fiscal 2022 guidance when it reports first quarter fiscal 2022 results on Thursday, May 26.