Gap CEO draws ‘line in the sand’

Gap Inc. CEO Art Peck is refocusing the 3,000-store company on the areas with the biggest potential for driving growth — and they do not include its oldest divisions.



“We’re certainly not giving up on Gap or Banana [Republic], but we’re acknowledging the world continues to change,” Peck said in an interview with Bloomberg. “And those are the two most mature brands in the portfolio.”



Going forward, Peck is emphasizing Gap's newer brands, Old Navy and Athleta. He is not giving up on the company's namesake division as much as he is pruning it.



“I want fewer, better Gap stores,” he said in the report.



Old Navy contributes about three-quarters of the company’s profit, compared with Gap’s 7%, according to Jefferies LLC analyst Randal Konik.



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