Gap CEO Art Peck steps down amid slumping sales

Marco Green
November 8, 2019

Peck, among the highest-paid chief executives in retail, has presided over several years of sales declines at the Gap brand.

Clothing retailer Gap announced Thursday that the company's president and CEO, Art Peck, will step down from his position. The company's current non-executive chairman of the board, Robert J. Fisher, will serve as interim president and CEO.

The San Francisco-based retailer on Thursday also cut its earnings outlook for the year, and said sales at the Gap, Banana Republic and Old Navy fell in the most recent quarter.

The news comes as the company is in the midst of splitting into two publicly traded companies, one for its Old Navy brand and another for the Gap, Banana Republic and its lesser known brands. That was in contrast to the same quarter a year ago in which both of those chains reported a sales uptick.

Old Navy, which has been a strong performer for Gap is being spun off into its own public company next year.

Peck, who joined the company in 2005 and became chief executive in 2015, will depart from the company after a brief transition.

Store closures: 51 Sears, 45 Kmart locations to shutter. Gap's stock lost more than half its value during Peck's tenure and is trading at around $18 a share.

The news was delivered in the company's quarterly earnings.

"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.

Other reports by Click Lancashire

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