Gap Taps Syngal to Be Old Navy's President -- Update

By Maria Armental 

Gap Inc. named longtime executive Sonia Syngal as president of Old Navy as the retailer seeks to rekindle sales and expand companywide the "fast-fashion" model that helped turn the brand into its sales engine.

Ms. Syngal succeeds Stefan Larsson, who left last year to become Ralph Lauren Corp.'s chief executive. Her base salary was set at $875,000.

Ms. Syngal, who most recently served as executive vice president of global supply chain and product operations, previously led Old Navy's international division along with Gap's and Banana Republic's European operations.

Old Navy accounted for 42% of the retailer's sales last year and was the only brand to report a sales increase from the year earlier. However, Old Navy's momentum has slowed, with sales increasing 1% in the year ended Jan. 30, down from 6% a year earlier.

Mr. Larsson had been credited with turning around Old Navy's fortunes by adopting a sales model popularized by fast-fashion chains that allows retailers to respond more quickly to sales trends.

Meanwhile, Jill Stanton, who joined the company in 2012 as a creative adviser for Old Navy and had led the Old Navy brand on a temporary basis since September, will stay on as a strategic adviser during an unspecified transitional period, the company said.

In addition, the retailer appointed Michael Yee as executive vice president for global supply chain, sourcing and production, and Shawn Curran as executive vice president for global supply chain logistics and production operations. The two, who previously reported to Ms. Syngal in similar capacities, will now report directly to Chief Executive Art Peck. No additional information was given.

The San Francisco-based retailer, which after four consecutive quarters of falling sales reported its first annual sales decline since fiscal year 2011, warned this month that high inventories would pressure first-quarter results. Gap is scheduled to report first-quarter results on May 19.

The company's stock closed Wednesday at $23.93, down 42% over the past 12 months.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

April 13, 2016 20:04 ET (00:04 GMT)

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