Alongside reporting its fourth quarter and fiscal year (ended Jan. 28, 2023) results, Gap Inc. has announced several changes to its executive leadership teams across its daughters Old Navy, Gap, Banana Republic and Athleta. First and foremost, Mary Beth Laughton, president and CEO of Athleta, left the DTC retailer on the group’s reporting day. The women’s active apparel chain’s fourth-quarter comparable sales fell 5 percent in the fourth quarter. “We believe Athleta has incredible potential, but it has suffered from product acceptance challenges over the past several quarters. As we look to capitalize on this potential and remain competitive amidst a dynamic landscape, we believe now is the right time to bring in a new leader who can position Athleta for long-term success,” said Bob Martin, Gap Inc. executive chairman and interim CEO.
Companywide, net sales reached $4.24 billion, down 6 percent compared to last year, inclusive of an estimated 1-point foreign exchange headwind. Net sales were in line with Gap Inc.’s expectations for mid-single-digit declines in the quarter. Comparable sales across the Gap brands went down 5 percent year-over-year. Store sales decreased 3 percent compared to last year. Online sales decreased 10 percent compared to last year and represented 41 percent of total net sales. Gap Inc. announced to further simplify and optimize its operating mode, including decreasing management layers to improve the quality and speed of decision-making across all four brands. As a result of the company optimizing its operating structure, the role of chief growth officer, held by Asheesh Saksena, was eliminated.
