Gap announces executive shakeup amid losses in holiday quarter, drop in sales

Gap posted a poor showing in its holiday-quarter results on Thursday. The clothing retailer also announced a series of executive changes as it continues in its quest to find a permanent Chief Executive Officer (CEO).  As Gap is looking for a new CEO, its executive chairman, Bob Martin, has been managing the retailer’s affairs as the interim CEO. As the corporation struggles to become profitable again, it announced that it is eliminating its role of Chief Growth Officer (CGO), which was held by Asheesh Saksena. This development was notified by the firm on Thursday. Mary Beth Laughton, CEO of Athleta, also resigned on Thursday. Gap reported a net loss of $273 million, or 75 cents per share, for three months ended 28 January, a sharp downfall compared to losses of $16 million or 4 cents per equity a year earlier. Gap’s went down 6 percent to stand at $4.24 billion from $4.53 billion a year earlier. Comparable sales fell 5 per cent year-over-year and store sales went down 3 per cent. Online sales, which  make up 41 per cent of the total net sales, dropped 10 per cent compared to last year, as told by the company to media outlets. Old Navy, which is responsible for the majority of Gap’s revenue, reported $2.2 billion in sales in the last quarter, down 6 per cent from a year earlier.  Gap’s sales declined by 9 per cent year-over-year to stand at $1.1 billion in the quarter, while the firm’s comparable sales in North America fell 5 per cent. In the last quarter, its unit Athleta registered a 1 per cent fall in sales to $436 million, and its comparable sales dropped 5 per cent. Overall, Gap’s net sales for the year fell to $15.62 billion, against $16.67 billion in the previous fiscal year. Net losses for the year stood at $202 million, against the net income of $256 million in the prior fiscal year. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.