Sonia Singhal, CEO of Gap, resigns with immediate effect

12 July 2022 | 9:15 am

the difference announced that the CEO, Sonia Segal He will step down immediately after just two years in charge of the apparel retailer as the US company grapples with supply chain challenges and declining sales.

He also warned that margins will remain under pressure in the second quarter Costs have gone upWhich led to a decline in the company’s shares after the announcement.

At 8:40 a.m. (Mexico City time), it was gap arrow And they fell 8.33% to $8.03, recording their deepest decline since last May 24, according to data from Investing.com.

The company’s shares have fallen more than 75% from their May 2021 highs, and in June they traded in Lowest level In more than two years.

After the resignation of Senegal, the CEO, Bob Martinwill take over as interim CEO, while the former CEO of Walmart Canada, Horace Barbettoto drive ancient marine In difficult times for the company’s largest brand.

I think it’s a necessary change given the recent problems with Gap. The addition of a permanent CEO of Old Navy is a positive as Gap needs to stabilize this part of the business

David Schwartz, an analyst at Morningstar, told Reuters.

You can read: GAP declines as higher costs fall in forecast

Issues running in Old Navy

In early 2022, Gap said he was having trouble at work ancient marine He said the shift to formal and party wear from casual wear left brand choice “out of sync” with changing tastes.

To clear inventory and make room for new products, Gap increased promotions in a move that is expected to have a negative impact on gross margins for the second quarter.

The company said on Monday.

Additionally, it expects a slightly negative adjusted operating margin ratio to zero, compared to an increase of 10.2% last year, and expects Net sales Decrease in the range of high single digits.

Meanwhile, Singhal, 52, is leaving the company just months after cutting its full-year profit forecast due to weak demand pressures in the face of a rally. inflation; For his part, Gap did not give a reason for his sudden departure.

singal head ancient marine before being set Executive Director In March 2020.

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With information from Reuters