Gap CEO steps down
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Gap Inc. CEO Sonia Syngal is stepping down, the company announced Monday, as the retailer struggles with slumping sales, the effects of high inflation and supply-chain issues.
"Leading this great company and our 100,000-strong employees since 2020, through unprecedented challenges for our industry and society, has been an immense honor. Through it all, Gap Inc. and its dedicated teams have seized change as an opportunity, restructured for future growth, crystallized unique brand identities rooted in cultural relevance and fiercely chased transformation," Syngal, 52, said in a statement.
Board Chairman Bob Martin will take over immediately as interim president and chief executive officer. Martin previously served as the CEO of Walmart's international division and has served on the Gap board since 2002 and as executive chairman since 2020.
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FILE PHOTO: A Gap Inc. retail store is shown in La Jolla, California, U.S., May 17, 2017. (REUTERS/Mike Blake / Reuters)
Syngal commended the work of Gap's co-founders, Doris and Don Fisher, which she said enabled her to build her career and "break boundaries."
"My fellow board members and I want to thank Sonia for her steadfast leadership and many contributions to Gap Inc. during her 18 years with us. Most notably, amidst significant global disruption, social unrest and economic instability, Sonia had an immediate impact as Gap Inc. CEO, establishing a clear strategic direction and cultural identity that has united this global enterprise as a force for good with powerful brands poised to stand the test of time," Martin said. "While a search is underway, the board has complete confidence in the formidable leadership team to guide the company through this transition."
Gap Inc. CEO Sonia Syngal stands before an event with former President Trump about reopening the country after the coronavirus closures, in the State Dining Room of the White House, Friday, May 29, 2020, in Washington. (AP Photo/Alex Brandon, File / AP Newsroom)
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The company also announced that Horacio "Haio" Barbeito will serve as Old Navy's chief executive.
These changes come as the retailer struggles with slumping sales and inflation.
The company said it expects net sales in the fiscal second quarter to decline in the approximately high-single-digit range. Gap said that was relatively in-line with its prior expectations.
FILE PHOTO: A basket of flowers hangs near Gap Inc's flagship retail store at the Powell Street cable car turn in San Francisco, California August 20, 2009. (REUTERS/Robert Galbraith/File Photo / Reuters)
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Gap forecasts its adjusted operating margin percentage to be zero to slightly negative, compared with a 10.2% rise last year.
The company is expected to report final second-quarter financial results in August.
Reuters contributed to this report.