Gap Inc. announced late Thursday that Old Navy president and CEO Nancy Green is exiting the company this week.
The company said that an external search is underway for Green’s replacement. In the meantime, Gap Inc. CEO Sonia Syngal will work closely with the Old Navy team to lead through this transition until a new brand president is identified.
In a statement on Thursday, Syngal seemingly signaled that this was a corporate decision, and Green was let go, stating in part, “As we look to seize Old Navy’s potential, particularly amidst the macro-economic dynamics facing our industry, we believe now is the right time to bring in a new leader with the operational rigor and creative vision to execute on the brand’s unique value proposition.”
“I want to thank Nancy Green for her decades of leadership and passion for our brands and customers, as well as the communities we serve,” Syngal added.
During Green’s more than 25-year tenure with Gap Inc., she has held executive leadership roles across the company’s portfolio of brands, including leading Athleta, the active and wellness lifestyle apparel brand. During her time in role, the business grew from $250 million to a nearly $1 billion, purpose-led business with significant earnings expansion.
Prior to Gap Inc., Green held leadership roles at Shabby Chic and Pottery Barn.
As part of this move, Gap Inc. updated its first quarter fiscal 2022 net sales growth guidance “in light of the macro-economic dynamics as well as the execution challenges at the Old Navy brand,” the company said in a statement.
The company now expects approximately low to mid-teens year-over-year declines in the first quarter fiscal 2022, up from its prior guidance of mid to high single digit year-over-year declines. The company has also taken a more aggressive approach to assortment balancing resulting in increased promotional levels primarily at Old Navy. The company will be providing updated fiscal 2022 guidance when it reports first quarter fiscal 2022 results on Thursday, May 26.