A recent report by Forbes has suggested, based on a comment by a Credit Suisse analyst, that the chances for an Athleta spin-off have risen “significantly” following the departure of Sonia Syngal, Gap Inc.’s former CEO. Syngal suddenly resigned effective immediately July 11 as Gap struggles with declining sales. She took over as CEO in March 2020 after leading the Gap’s Old Navy business and had been with the retailer since 2004.
Gap suffered a net loss of $162 million in the three-month period ended April 30, compared to a profit of $166 million during the same period a year earlier, while revenues fell by around 13 percent. The company is set to report results for its fiscal second quarter on Aug. 25. According to Credit Suisse analyst Michael Binetti, Gap might be exploring “strategic alternatives [including an Athleta spin-off] or a large scale SG&A cut,” Forbes reported. An article on SGBMedia in April 2022 already spoke of “renewed speculation” about a possible spin-off of Gap’s Athleta brand, arguing that such speculation had first surfaced in July 2021.
