GAP CEO ART PECK STEPS DOWN AMID SALES SLUMP

Gap Inc. 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. Peck will also step down from Gap’s board.

“On behalf of the entire board, I want to thank Art for his many contributions to Gap Inc., spanning a nearly 15-year career with the company,” said Fisher. “Under Art’s tenure as CEO, we have made progress investing in capabilities that bode well for the future such as expanding the omnichannel customer experience and building our digital capabilities.”

Peck joined Gap Inc. in 2005 and has held senior leadership positions across nearly every area of the company. On October 8, 2014, he was named Gap Inc. CEO, effective February 1, 2015.

He joined the company as executive vice president of strategy and operations, and he made an immediate impact by launching the company’s first franchise business, which now has grown to about 400 Gap, Banana Republic and Old Navy franchise stores in 40 countries.

Prior to joining Gap Inc., Peck spent 20 years with The Boston Consulting Group, an international strategy and management consulting firm, where he ultimately served as a senior partner.

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 Gap were the hardest hit, with same-store sales declining 7 percent, compared with a 3 percent dip for Banana Republic and a 4 percent decline for Old Navy.