Gap is Replacing CEO of Flagship Brand
Gap said today that Jeff Kirwan, president and chief executive of its eponymous brand, will leave the apparel retailer, pushing its shares down 5 percent. The news comes just over a week before Gap is scheduled to announce fourth-quarter results. The company, in November, raised its 2017 earnings and same-store sales forecasts, likely reflecting higher sales in the key holiday quarter. Brent Hyder, current Gap executive vice president, head of global talent and sustainability, will oversee the brand as the retailer looks for new president.
Total Retail's Take: The iconic retail brand is trying to recover from a prolonged period of slumping sales and profits, precipitated by more consumers choosing to shop online as well as the growth of fast-fashion chains that have eaten into Gap's market share. In a statement announcing Kirwan's departure, Gap Inc. CEO Art Peck lamented that the Gap brand "has not achieved the operational excellence and accelerated profit growth that we know is possible." New leadership will be brought in, and that person will have the difficult task of trying to return Gap to its former standing atop the retail apparel food chain.