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Gap Plunges After Cutting Sales Growth

Published 04/22/2022, 10:01 AM
Updated 04/22/2022, 10:04 AM
© Reuters.
GAP
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By Sam Boughedda

Investing.com -- Gap, Inc. (NYSE:GPS) plunged Friday after the company cut its sales growth outlook due to "macroeconomic dynamics."

The company cut its fiscal 2022 net sales growth guidance to approximately low to mid-teens year-over-year declines from its prior guidance of mid-to-high single-digit year-over-year declines.

The company also announced that Old Navy President and CEO Nancy Green is exiting the Old Navy business this week.

Sonia Syngal, Chief Executive Officer of Gap, will work closely with the Old Navy team to lead it through the transition, the company said.

With rising inflation and supply chain troubles, Gap and Old Navy have been impacted. In addition, delayed shipments have meant, in some instances, that the amount of merchandise has been unable to meet consumer demand.

Gap stock fell more than 20% Friday.

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