Old Navy CEO will step down as parent company Gap cuts sales guidelines

An employee hands a customer a shopping bag at an Old Navy Inc. store in San Francisco.

David Paul Morris | Bloomberg | Getty Images

gap inc announced Thursday that its Old Navy division CEO Nancy Green will be leaving the business this week.

In light of the execution challenges within its Old Navy business, Gap has also narrowed its outlook for net sales growth in the first quarter of fiscal year 2022. It now expects declines among young people and teens over the year. previous, adjusted by a previous forecast that required medium-high single-digit declines.

Gap said it took a “more aggressive approach” to balance its assortment of goods at Old Navy, which resulted in higher promotional levels.

The retailer said it will provide an updated fiscal outlook for 2022 when it reports quarterly results on May 26.

Gap shares fell more than 9% in extended news trading.

Find the full Gap press release here.

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