“The plan to separate was rooted in our commitment to value creation from our portfolio of iconic brands,” said Robert Fisher, Gap Inc. interim president and chief executive officer. “While the objectives of the separation remain relevant, our board of directors has concluded that the cost and complexity of splitting into two companies, combined with softer business performance, limited our ability to create appropriate value from separation.”
Neil Fiske, president and CEO of the Gap brand, will depart the company after a year of challenges and changes. Gap will appoint a new CEO to manage its overall brand portfolio and to work with the board of directors to create and execute a corporate strategy.
“The work we’ve done to prepare for the spin[off] shone a bright light on operational inefficiencies and areas for improvement,” continued Fisher. “We have learned a lot and intend to operate Gap Inc. in a more rigorous and transformational manner that empowers our growth brands, Old Navy and Athleta, and appropriately focuses on profitability for Banana Republic and Gap brand. Our board is focused on supporting this work and appointing new leadership with the appropriate experience necessary to lead a portfolio of retail brands and to support our transformation efforts.”
2019 fiscal performance is anticipated to be toward the higher end of the company’s previously issued guidance.
“We are working aggressively to stabilize and improve business results,” said Teri List-Stoll, executive vice president and chief financial officer, Gap Inc. “We are committed to sharpened strategic focus, tailored operating strategies and operational discipline and accountability that can strengthen the health and profitability of our brands.”