Gap’s CEO is Leaving the Company

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Gap shares took a beating on Tuesday after it was revealed that the company’s President and CEO Jeff Kirwan is leaving the company.

He is being replaced by incoming CEO Art Peck, who commented about how the company isn’t progressing as well as it should.

Peck remarked, “While I am pleased with our progress in brand health and product quality, we have not
achieved the operational excellence and accelerated profit growth that we know is possible at Gap brand.

As we move into the brand’s next phase of development, Jeff and I agreed it was an appropriate time for a change in leadership.”

It was in November of 2014 that Kirwan began to lead the company and it was then that Peck had said that he would be a part of “a management team comprised of both established executives and the next generation of brand leaders ready for the next generation of customers.”

Kirwan had strong success being the president of Gap Inc. for greater China during the time.

Unfortunately the retailer has since struggled and last September, Gap said it would be closing about 200 Gap and Banana Republic stores over the next three years.

The company is expected to report its fourth quarter earnings on March 1st.

Disclaimer: We have no position in Gap Inc. (NYSE: GPS) and have not been compensated for this article.