The company again is missing its target amid heavy markdowns.
Gap Inc. reports Athleta’s same-store sales slumped 9 percent in Q2, again missing a target amid heavy markdowns. During Gap’s analyst call, company officials expressed optimism that the recent hiring of Maggie Gauger, a longtime Nike veteran, as Athleta’s President would support a turnaround, but they stressed that the reset will take time.
“At Athleta, we’re disappointed in the second quarter performance,” said Gap’s Chief Executive Officer, Richard Dickson. “As we shared last quarter, we’re approaching 2025 as a purposeful reset year. Although we saw bright spots in key items like sports bras and shorts in the quarter, the broader assortment simply isn’t aligned with what the Athleta customer expects.”
He added, “We continue to believe that this brand has great potential. We moved away, if you will, from the distinctive performance roots that the brand was known for. We’re now going to get back into that spirit with Maggie Gauger, who we hired from Nike, a 20-year veteran. She has hit the ground running, only been there for three weeks, but I can tell you the energy is palpable.”
Gauger was, most recently, the head of Nike’s North American women’s business. Hired in July, she is the third executive to lead the brand in the last two years.
