Gap CEO Sonia Syngal is stepping down, effective immediately

Hole CEO Sonia Syngal is stepping down, successful quickly, the enterprise declared on Monday, as the clothing retailer battles offer chain problems and slumping product sales.

Syngal will stay at the company in the course of a brief changeover period of time, and Bob Martin, the company’s current govt chairman of the board, will provide as interim president and CEO, Hole mentioned.

Gap shares fell additional than 4% in prolonged trading on the information.

Syngal stated in a statement that she is “grateful to have the board’s help in stepping down, ushering in a new option for clean perspective and rejuvenated leadership to carry Gap Inc. forward.”

Syngal was previously the chief of Gap’s Aged Navy business just before she took in excess of as CEO in March 2020, just days right before Covid-19 started off spreading throughout the U.S. She has been with the retailer considering that 2004. 

Hole also named a new main for its Old Navy enterprise to do well Nancy Inexperienced who departed the publish in April. Horacio “Haio” Barbeito, most recently president and CEO of Walmart Canada, is expected to consider over the Old Navy small business on Aug. 1.

In tandem with the C-suite shake-up, Hole up-to-date its fiscal 2nd-quarter guidance, saying it nevertheless expects gross sales to decrease in the “about superior one-digit array.”

But Gap additional that larger marketing activity experienced a negative effect on its gross margin it now forecasts its altered working margin proportion in the second quarter at zero to a little negative.

The firm nonetheless expects to incur an believed $50 million of charges in the course of the quarter related to air freight cost and inflation.

Hole is established to report results for that period on Thursday, Aug. 25.

The retailer in recent months has grappled with provide chain road blocks that have still left it with jumbled up measurements and models that you should not suit what its clients are on the lookout for. In the most current quarter, an imbalanced mix of outfits sizes, adhering to a press into plus-measurement styles, coupled with an uptick in rate-lowering promotions place a dent in Previous Navy’s efficiency, specially.

Hole swung to a internet loss of $162 million in the three-month time period ended April 30, as opposed with a revenue of $166 million during the exact same period of time a year before. Income fell roughly 13% to $3.48 billion.