×
1 907
Fashion Jobs
LULULEMON
General Manager Houston Texas United States Gérant Adjoint de Magasin
CDI · Laval
PUMA
Manager, Merchandising -Footwear
CDI · Toronto
ESTÉE LAUDER
Director, Field Sales - Aveda Canada
CDI · Toronto
ADIDAS
Assistant Marketing Manager, Retail Activation
CDI · Vaughan
OLD NAVY
General Manager - Manning Town Centre (New Store)
CDI · Edmonton
MARSHALLS
Loss Prevention Store Investigator - Gta
CDI · Toronto
BANANA REPUBLIC
General Manager- Fairview Park Mall
CDI · Kitchener
GAP
General Manager- Fairview Mall
CDI · Toronto
GAP
General Manager East Gta
CDI · Toronto
L'OREAL GROUP
Account Executive - Luxe Division (Montreal)
CDI · Montreal
OLD NAVY
Loss Prevention Agent - Bramalea City Centre
CDI · Brampton
OLD NAVY
Loss Prevention Agent - Toronto Eaton Centre
CDI · Toronto
OLD NAVY
Loss Prevention Agent - Limeridge Mall
CDI · Hamilton
OLD NAVY
Loss Prevention Agent - Scarborough t/c
CDI · Toronto
OLD NAVY
Loss Prevention Agent - Metropolis
CDI · Burnaby
TJX COMPANIES INC.
District Manager, Calgary
CDI · Calgary
MARSHALLS
Winners 401 & Mccowan - Sales Floor Merchandise Coordinator (Open Availibility)
CDI · Toronto
BANANA REPUBLIC
General Manager- Ottawa Tanger
CDI · Ottawa
GAP
General Manager- Lansdowne Place Peterborough
CDI · Peterborough
GAP
Assistant General Manager - Merchandising - Niagara on The Lake
CDI · Niagara-on-the-Lake
L'OREAL GROUP
Business Consultant - l'Oréal Professionnal (Ottawa)
CDI · Ottawa
OLD NAVY
Loss Prevention Agent - Guildford t/c
CDI · Surrey

Old Navy spin-off in doubt after Gap's Peck departs - analysts

By
Reuters API
Published
today Nov 8, 2019
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Shares of Gap Inc fell nearly 10% on Friday, as the surprise departure of Chief Executive Officer Art Peck and persistent declining sales, threw the apparel retailer's planned spin-off of its Old Navy brand into question.




Peck, who joined the company in 2005 and has held the top job since 2015, planned to split Old Navy into a separate public company as he strove to revitalise Gap with the addition of Athleta athleisure wear, provide more online offerings and close unprofitable stores.

Old Navy's spin-off was predicated on its out performance of Gap's other brands, but Peck's departure, after recent poor sales in a flooded market, had Wall Street wondering whether the split could be delayed or abandoned altogether.

"We think the Old Navy spin should be scrapped ... it makes little sense to spin Old Navy until, at least, its sales have stabilized," Morningstar analyst David Swartz said.

Swartz noted that Old Navy has carried Gap for years and likely represents most of its enterprise value.

"We see little future for a Gap without Old Navy ... it is difficult to see how Gap can attract a top-flight CEO to fix the company if it is going to be stripped of Old Navy, its best asset," Swartz said.

The Gap brand, once a trend setter with its casual logo emblazoned hoodies and Khaki cargos, has recently struggled to keep pace with fast-fashion rivals such as Zara and H&M.

On Thursday, the company estimated a 4% drop in third-quarter same-store sales, with declines across all its key brands including Old Navy.

J.P.Morgan analyst Matthew Boss wrote that Chief Financial Officer Teri List-Stoll, on a follow up, said it was a board decision for Peck to step down, adding the timing coincides with the 2020 planning process.

Gap shares have more than halved in value in Peck's four years in charge.
"We have to think this new development will make the original timeline of the planned Old Navy separation extremely difficult," Evercore SI analyst Westcott Rochett said, calling Peck's departure "definitely shocking."
 

© Thomson Reuters 2020 All rights reserved.