×
287
Fashion Jobs
ADIDAS
Senior Manager HR Data
Permanent · CHENNAI
ADIDAS
Profit Protection Specialist
Permanent · GURUGRAM
ADIDAS
Senior Specialist - Finance Operations fp&a
Permanent · CHENNAI
EC COUNCIL
Channel Sales Manager (International Market)
Permanent · Mumbai
CENTURYPLY
Area Sales Manager - Indore
Permanent · Indore
2COMS
District Manager Bangalore
Permanent · Bengaluru
PREMIER CONSULTANTS
Area Sales Manager- Corporate Salary- Mnc Bank
Permanent · Bengaluru
HR INNOVATION GROUP
Production Manager-Machine Shop, Khed Shivapur ,Bus Facility Swarget
Permanent · Pune
CENTURYPLY
Area Sales Manager - Pune
Permanent · Pune
HR CENTRAL
Hiring - Sales Manager- Real Estate Sales-Mumbai
Permanent · Mumbai
GIST MANAGEMENT SOLUTIONS
Area Sales Manager (Mining) For a Construction Equipment CO., Raipur
Permanent · Raipur
COMPLETE RESOURCES
Opening For Area Sales Manager-Cochin,Angamaly,Ernakulum Loc
Permanent · Ernakulam
ADITYA BIRLA FINANCE
Area Sales Manager - Home Loan / Lap - Direct & Dsa - Kolkata
Permanent · Bengaluru
CENTURYPLY
Area Sales Manager - Ghaziabad
Permanent · Ghaziabad
MV SHOES
Wanted Area Sales Manager
Permanent · Hosur
VRB CONSUMER PRODUCTS
Job Opening as Asst Manager Production - Keshwana
Permanent · Keshwana
ADIDAS
Senior Manager - Company Secretary -Aimpl
Permanent · GURUGRAM
L'OREAL GROUP
Product Manager- Kiehl's, Luxury
Permanent · Mumbai
L'OREAL GROUP
Senior Key Account Manager - Ecommerce, Ppd
Permanent · Mumbai
PROPELLANT CONSULTANTS
Area Sales Manager (Biscuit Division)- Vijayawada
Permanent · Vijayawada
G. PULLA REDDY FOODS
Production Manager (Namkeens)
Permanent · Hyderabad
PROPELLANT CONSULTANTS
Area Sales Manager (Biscuit Division)- Hyderabad
Permanent · Hyderabad
By
Reuters API
Published
Nov 10, 2019
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

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

By
Reuters API
Published
Nov 10, 2019

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 2023 All rights reserved.