Shakeup at Gap: CEO to step down
Art Peck is out at Gap Inc.
The retailer announced that Peck, president and CEO, will step down from his position “after a brief transition.” Effective immediately, Robert J. Fisher, the company's current non-executive chairman, will also serve as interim president and chief executive officer while Gap searches for a permanent successor. Peck is a 15-year Gap veteran who has served as CEO since 2015.
The company gave no reason for Peck’s departure. But it came on the same day that Gap slashed its profit outlook for fiscal 2019, saying it now expects 2019 adjusted earnings per share guidance range of $1.70 to $1.75 versus previous guidance of $2.05 to $2.15. The company also reported that its third-quarter same-store sales fell 4%, falling by brand 7% at Gap, 4% at Old Navy and 3% at Banana Republic.
“On behalf of the entire board, I want to thank Art for his many contributions to Gap Inc., spanning a nearly 15-year career with the company,” said Fisher. “Under Art’s tenure as CEO, 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.”
A member of the founding family of Gap, Fisher has a 35-year history with the retailer, serving in a variety of senior executive positions, including interim president and CEO. He has served on the board since 1990 and has also served as non-executive chairman since February 2015.
“As the board evaluates potential successors, our focus will be on strong leadership candidates with operational excellence to drive greater efficiency, speed and profitability,” said Fisher. “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.”