• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 

2

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent

3

Current price of oil as of June 1, 2026

1

The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 

2

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent

3

Current price of oil as of June 1, 2026
Retail

The Gap CEO Out After Struggling to Grow Profits

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
February 20, 2018, 11:43 AM ET

Gap Inc (GPS) is facing new challenges with the head of its namesake brand leaving The Gap after failing to improve operations and profit growth to the liking of the clothing retailer’s chief executive.

The company, which also operates Banana Republic, Old Navy, and Athleta, said on Tuesday that Jeff Kirwan, president and CEO of The Gap, was leaving the company. He had been named to the job in late 2014 after several years at Gap Inc in other roles, and tasked with reinventing and improving the core business of a brand that generates 25% of Gap Inc’s total sales.

But in those twelve quarters with Kirwan at the helm, The Gap brand managed only one quarter of comparable sales growth, which came in its most recently reported quarter, despite the culling of many weak stores over the years. (Gap Inc will report fourth quarter results on March 1.)

Gap Inc CEO Art Peck has been trying to get Gap and Banana Republic, whose problems have been deeper than Gap’s, to borrow more from the playbook of sister chain Old Navy, which generates more than half of Gap Inc sales and is a true juggernaut. The company has been striving to improve the quality, fit and look of its products, be speedier with its supply chain and production at this twi brands to be able to jump on trends more quickly, something Old Navy has proven to be good at. Peck credited Kirwan for making progress on The Gap’s esthetics and ability to improve store traffic trends.

But getting that sharing of good practices to translate into stronger financial performances as The Gap and Banana Republic has proven to be elusive.

“We have not achieved the operational excellence and accelerated profit growth that we know is possible at Gap brand. As we move into the brand’s next phase of development, Jeff and I agreed it was an appropriate time for a change in leadership,” Peck said in a statement.

The company will look for a new president of The Gap but for now, Brent Hyder, current head of Gap Inc’s global talent and sustainability and former operations chief of The Gap, will oversee the brand. Wall Street firm Jefferies said in a research note that The Gap’s improvements of late “should elicit interest from strong replacement candidates.” Still, The Gap is facing off with not only traditional rivals such as Abercrombie & Fitch (ANF) and American Eagle Outfitters (ANF) but also with overhauled private label brands of major general chains such as Target’s (TGT) Goodfellow & Co and others.

Whoever does take the job could have a smaller realm to preside over. Gap Inc said in September it would close about 200 Gap and Banana Republic stores (the latest round of closings in recent years) while also opening 270 Old Navy and Athleta stores to expand the chains that are excelling. Indeed, though Old Navy generates half of sales, it represents about 70% of company profit, making The Gap a relative laggard in terms of boosting the bottom line.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

How to save the internet—according to Sam Altman’s all-seeing Orb  
EuropeEurope
How to save the internet—according to Sam Altman’s all-seeing Orb  
By Sam BirchallJune 1, 2026
17 hours ago
Delta has trained its passengers to pay premium prices. Here’s how it plans to get even more from them
C-SuiteAir Travel
Delta has trained its passengers to pay premium prices. Here’s how it plans to get even more from them
By Phil WahbaMay 30, 2026
3 days ago
Tomatoes become the latest symbol of the affordability crisis as prices rose over 40% from last year
EconomyGrocery
Tomatoes become the latest symbol of the affordability crisis as prices rose over 40% from last year
By The Associated Press and Matt SedenskyMay 29, 2026
4 days ago
A barista wearing a green apron stands behind the bar and pours a drink into a cup
RetailStarbucks
Starbucks quietly retired its AI agent just months after deployment after it miscounted coffee shop inventories and slowed down baristas
By Sasha RogelbergMay 28, 2026
4 days ago
lee
Commentarystock exchanges
Texas Stock Exchange CEO: exchanges can build on Exxon’s retail model to rein in proxy advisors
By James H. LeeMay 28, 2026
5 days ago
Independent book stores are growing as people look for community in local spaces
Retailbooks
Independent book stores are growing as people look for community in local spaces
By The Associated Press and Hillel ItalieMay 28, 2026
5 days ago

Most Popular

The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 
Energy
The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 
By Melissa HancockJune 1, 2026
14 hours ago
Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
Environment
Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
By Marco Quiroz-GutierrezJune 1, 2026
11 hours ago
Current price of oil as of June 1, 2026
Personal Finance
Current price of oil as of June 1, 2026
By Joseph HostetlerJune 1, 2026
16 hours ago
Current price of silver as of Monday, June 1, 2026
Personal Finance
Current price of silver as of Monday, June 1, 2026
By Joseph HostetlerJune 1, 2026
17 hours ago
After issuing more than $20 billion in tariff refunds, the Trump administration is now pursuing legal action to bring the process to a standstill
Law
After issuing more than $20 billion in tariff refunds, the Trump administration is now pursuing legal action to bring the process to a standstill
By Sasha RogelbergJune 1, 2026
12 hours ago
I wrote that Boomers were choking America’s economy. Their responses to me were revealing
Personal Finance
I wrote that Boomers were choking America’s economy. Their responses to me were revealing
By Nick LichtenbergMay 31, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.