(Reuters) Shares of Gap declined more than 11% in premarket on Friday after the company said it expects sales in the first quarter to fall in the low to mid-teens percentage range.
The slashed forecast comes when Gap and its peers have struggled to meet demand and manage inventories in the wake of delays in shipments due to supply chain constraints.
Gap also blamed execution challenges at its Old Navy brand for its woes. The company further stated that the head of its Old Navy brand, Nancy Green, would leave this week, with the CEO Sinia Syngal occupying the role in an acting capacity.
The company, which is expected to release its results for the first quarter on May 26, said it had to adopt an “aggressive approach” to balance its inventory. The approach led to increased marketing promotions, led by the Old Navy.
GPS: NYSE is down -11.83%.
