Shares of The Gap slid 10% as News of CEO, Art Peck, Resignation Settles In

Gap CEO Art Peck is resigning as the company continues to grapple with slumping sales, shares drop 10%.

Art Peck, Gap's CEO since 2015, will be stepping down and his temporarily replacement will be chairman of the board Robert Fisher (Son of the Founders of Gap). Peck will also be replaced on Gap's board.

The news comes as the company is undergoing the large task of splitting Gap into two publicly-traded companies, one for its Old Navy brand and another for the Gap, Banana Republic and its other brands. Shares of Gap have dropped 35% in the past 12 months. At the time, Mr. Peck called the split an opportunity “to write the next chapter for specialty retail.”

The Gap on Thursday updated investors and cut its earnings outlook for the year, and reported sales at the Gap, Banana Republic and Old Navy fell in the most recent quarter. Sales at The Gap were down 7%, compared with a 3% dip for Banana Republic and a 4% decline for Old Navy.

Gap, which is based in San Francisco, said Mr. Peck would leave after a “brief transition.”

Mr. Fisher said in the statement that under Mr. Peck, Gap had made progress in areas like “expanding the omni-channel customer experience and building our digital capabilities.”

“As the board evaluates potential successors, our focus will be on strong leadership candidates with operational excellence to drive greater efficiency, speed and profitability,” Mr. Fisher said.

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