Gap, Inc. announced that Old Navy President and CEO Nancy Green is exiting the Old Navy business this week.
Green had been president of Old Navy since October 2019 and CEO since October 2020. Previously, she was president of Athleta.
Old Navy’s same-store sales in the fourth quarter were flat compared with 2019 levels. The retailer has been particularly impacted by supply chain issues leading to inventory shortages.
“We believe in the power and potential of the Old Navy brand and the contribution it will have as we execute our Power Plan strategy and drive value creation at Gap, Inc.,” said Gap Inc. CEO Sonia Syngal. “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 the brand’s unique value proposition. 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.”
While an external search is underway, Gap, Inc. CEO Sonia Syngal will work with the Old Navy team to lead through this transition until a new brand president is found.
In light of the macro-economic dynamics and the execution challenges at the Old Navy brand, the company is updating its first-quarter fiscal 2022 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. The company 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 May 26.
Gap, Inc. also owns the Gap chain, the Banana Republic and Athleta.
Photo courtesy Athleta
