Gap CEO Art Peck is stepping down as the company continues to grapple with slumping sales.
Peck, who has been CEO since 2015, will be temporarily replaced by Gap's non-executive chairman of the board Robert Fisher, the company said Thursday. Peck will also step down from the Gap's board.
The company is in the midst of splitting into two publicly-traded companies, one for its Old Navy brand and another for the Gap, Banana Republic and its other brands. At the same time, its shares have plunged 35% in the past 12 months as its namesake struggled to attract shoppers amid increased competition from less expensive brands and online retailers.
The San Francisco-based retailer on Thursday also cut its earnings outlook for the year, and said sales at the Gap, Banana Republic and Old Navy fell in the most recent quarter.
Sales at The Gap were the hardest hit, with same-store sales declining 7%, compared with a 3% dip for Banana Republic and a 4% decline for Old Navy.
Shares of The Gap slid 10% in after-hours trading Thursday.