Boss of fashion retailer Gap ousted as rescue plan falters      

Gap shares fell as rising costs and discounts thwarted Sonia Syngal’s turnaround plan after over two years as chief executive of the clothing retailer.

Gap shares fell as rising costs and discounts thwarted Sonia Syngal’s turnaround plan after over two years as chief executive of the clothing retailer.

Chairman Bob Martin is taking over immediately as interim CEO, and the retailer lowered its expectation for second-quarter operating margin to zero. The shares, which fell as much as 8.7% in New York trading, have lost more than half their value so far this year.

Ms Syngal was hired right before the pandemic, which cut demand and intensified focus on online shopping amid mandatory store shutdowns. 

Missteps such as a clumsy implementation of expanded women’s sizes at the company’s Old Navy chain, whose top executive left earlier this year, caused stock levels to swell just as demand may have crested. 

"Several disappointing catalysts have now hit, the bull case has been eliminated in the near-to-medium term,” Wells Fargo analysts said. 

Back in early 2020, it was Ms Syngal who stepped in to replace a CEO who abruptly departed amid operational problems. Predecessor Art Peck left after a scrapped plan to spin off Old Navy and failing to reignite sales growth. 

After taking over in March 2020, Ms Syngal immediately had to navigate Covid-19. 

Bloomberg