U.S. retailer the Gap (GPS) announced several executive changes as it posted a big quarterly loss amid declining sales.
The San Francisco-based company announced a net loss of $273 million U.S., or $0.75 U.S. per share, for the three months ended January 28, 2023. That compared with a loss of $16 million U.S., or $0.04 U.S. per share a year earlier.
Gap also reported sales of $4.24 billion U.S. for the holiday quarter, down 6% from $4.53 billion U.S. a year earlier. Comparable sales were down 5% year-over-year and online sales declined 10% compared to a year ago.
The apparel retailer, which continues to search for a permanent chief executive officer (CEO), said it is eliminating its chief growth officer role, which had been held by Asheesh Saksena. Mary Beth Laughton, who was CEO of the company’s Athleta’s brand, has also left.
Chief People Officer Sheila Peters is also leaving the company at the end of this year. Last July, Sonia Syngal abruptly resigned as the company’s CEO. The Gap has yet to find a permanent replacement.
The Gap added that it plans to close 50 to 55 Gap and Banana Republic stores and open 30 to 35 Athleta and Old Navy stores.
The company expects first quarter net sales to decrease in the mid-single digit range compared to the prior fiscal year and expects fiscal 2023 net sales to decrease in the low to mid-single digit range.
In a lone bright spot for the Gap, the company said that its inventory levels declined 21% year-over-year during its most recent quarter.
The Gap’s stock has fallen 19% over the past 12 months to trade at $11.58 U.S. per share.
