Horacio ‘Haio’ Barbeito will be appointed as president and chief executive officer of Old Navy, a global apparel and accessories brand and division of Gap. Mayo Shattuck will continue to serve as lead independent director.
“My fellow board members and I want to thank Sonia for her steadfast leadership and many contributions to Gap Inc. during her 18 years with us. Most notably, amidst significant global disruption, social unrest and economic instability, Sonia had an immediate impact as Gap Inc. CEO, establishing a clear strategic direction and cultural identity that has united this global enterprise as a force for good with powerful brands poised to stand the test of time,” said Bob Martin in a press release.
"While a search is underway, the board has complete confidence in the formidable leadership team to guide the company through this transition. And I look forward to championing this incredible team as they continue to write Gap Inc.’s next chapter with grit and passion,” he added.
Gap has also provided an update on its second quarter fiscal 2022 results. It is expecting net sales to fall in the approximately high-single digit range, which is relatively in line with its previous expectations. The company continues to navigate margin headwinds and still foresees facing an estimated $50 million of transitory incremental air freight expense in the quarter as well as inflationary costs on raw materials and freight. It has also taken a more aggressive approach to assortment balancing, which has resulted in increased promotional activity during the quarter. Gap expects that this will have an adverse effect on gross margin in the quarter.
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