Gap CEO Peck to leave; earnings forecast cut sends shares tumbling

(Reuters) - Gap Inc said on Thursday Chief Executive Officer Art Peck will step down and also cut its full-year earnings forecast, blaming slower traffic and operational challenges, sending the apparel maker's shares down 7%. Peck's departure comes as Gap prepares to spin off its Old Navy brand, a bright spot for the struggling retailer, into a publicly listed company. He has been with Gap for nearly 15 years and will depart after a brief transition, the company said

Reuters November 08, 2019 04:06:51 IST
Gap CEO Peck to leave; earnings forecast cut sends shares tumbling

Gap CEO Peck to leave earnings forecast cut sends shares tumbling

(Reuters) - Gap Inc said on Thursday Chief Executive Officer Art Peck will step down and also cut its full-year earnings forecast, blaming slower traffic and operational challenges, sending the apparel maker's shares down 7%.

Peck's departure comes as Gap prepares to spin off its Old Navy brand, a bright spot for the struggling retailer, into a publicly listed company.

He has been with Gap for nearly 15 years and will depart after a brief transition, the company said.

Robert Fisher, the company's current non-executive board chairman, will serve as president and chief executive officer on an interim basis, effective immediately.

The apparel retailer, which estimated a 4% drop in third-quarter same-store sales, now expects full-year adjusted earnings per share of $1.70 to $1.75, down from its previous forecast of $2.05 to $2.15.

"This was a challenging quarter, as macro impacts and slower traffic further pressured results that have been hampered by product and operating challenges across key brands," Gap Chief Financial Officer Teri List-Stoll said.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.