GPS Gap Inc

   By Cara Lombardo 
 

Gap Inc. (GPS) will replace the president and chief executive of its flagship Gap brand as it looks to jumpstart sales.

The company said Tuesday it is searching for a replacement for Gap brand President and CEO Jeff Kirwan, who is resigning. Brent Hyder, Gap executive vice president of global talent and sustainability, will serve as interim brand president.

"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," Gap Inc. CEO Art Peck said in prepared remarks. "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."

Gap, an apparel brand darling of the late 1990s, has since then lost market share to fast-fashion rivals such as H&M, Zara and Uniqlo. Gap brand same-store sales dropped in the first two quarters of its fiscal year and rose slightly in its third quarter. Analysts expect Gap to report same-store sales fell 0.2% in its fourth quarter. Gap is slated to release its fourth-quarter earnings report next week.

Gap shares fell 6.4% in premarket trading.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

February 20, 2018 09:18 ET (14:18 GMT)

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