Gap, Inc. announced that President and CEO Sonia Syngal would step down from her position and its Board following a brief transition.
Effective immediately, Bob Martin, the company’s current executive chairman of the Board, will serve as Gap, Inc.’s president and chief executive officer on an interim basis, and Mayo Shattuck will continue to serve as a lead independent director.
“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. 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,” said Syngal. “With an exceptional and industry-leading CEO for Old Navy now appointed, I am thankful to have the Board’s support in stepping down, ushering in a new opportunity for a fresh perspective and rejuvenated leadership to carry Gap, Inc. forward.
“The company’s co-founders, Doris and Don Fisher, created a lasting and undeniable legacy for Gap, Inc. as a company with a heart. It is a home for creatives, innovators, data scientists, operators, and customer advocates, to build their careers and break boundaries, just as it enabled me to do the same,” added Syngal.
“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,” said Martin. “While a search is underway, the Board has complete confidence in the formidable leadership team to guide the company through this transition. And I look forward to championing this incredible team as they continue to write Gap Inc.’s next chapter with grit and passion.”
Bob Martin is a 40-year industry veteran with extensive retail experience at corporations including Dillard’s, Inc. and Walmart, where he served as CEO of its International division. Martin has served on the Gap, Inc. Board since 2002 as lead independent director from 2003/15 and as executive chairman since 2020. Martin brings significant global governance and executive management experience as well.
The company also announced that Horacio Barbeito would join Gap, Inc. as president and CEO of Old Navy effective on August 1.
“Haio is a true multi-disciplined retail leader who shares our vision of bringing the democracy of style and service to millions of Old Navy customers, leveraging our greatest assets – our people and our product. We are thrilled for Haio to bring his authentic leadership style to the team, backed by a strong track record of delivering growth through challenging times at complex global organizations,” said Martin.
“In this environment, Haio’s sincere customer empathy, operational excellence, and passion for product and marketing innovation will fuel Old Navy’s competitive strengths on its path to $10 billion, rooted in fun, family, fashion, and value.”
Barbeito most recently was president and CEO of Walmart Canada, where he led more than 70,000 employees and drove significant growth in its online business. During his 26-year career at Walmart, he worked in various leadership roles across merchandising, marketing, supply chain, and store operations with global experience in five countries. He has worked in CEO roles at Walmart for ten years, first as president and CEO of Walmart Argentina and Chile before taking the role as CEO of Walmart Canada, where he has spearheaded a modernization effort to grow that market’s omnichannel business.
Update on Second Quarter Fiscal 2022
The company expects net sales in the second quarter of fiscal 2022 to decline in the =high-single digit range, in line with its prior expectations.
The company continues to navigate margin headwinds and, as previously communicated, expects to incur an estimated $50 million of transitory incremental air freight expense in the quarter and inflationary costs on raw materials and freight. In addition, it has taken a more aggressive approach to assortment balancing resulting in increased promotional activity during the quarter, which it expects will negatively impact gross margins in the quarter.
The company anticipates the second-quarter fiscal 2022 adjusted operating margin percentage from zero to slightly negative.
The company has not completed its quarter closing and review process, and the final results for the second quarter of fiscal 2022 may differ. The company will provide further details on its second-quarter fiscal 2022 financials and its outlook when it reports second-quarter fiscal 2022 results on August 25.
Gap Inc.’s banners include Old Navy, Gap, Banana Republic, and Athleta brands.
Photo courtesy Wikimedia
