Gap (GPS) CEO Art Peck is stepping down from the clothing company after 15 years, the company said Thursday after the market closed. The company also said that it is cutting its profit outlook for the year.
The two pieces of news sent Gap shares down 8.1% in after-hours trading to $16.60.
"On behalf of the entire Board, I want to thank Art for his many contributions to Gap Inc., spanning a nearly 15-year career with the company," said Robert Fisher, the current non-executive chairman of the board who will now serve as interim CEO. "Under Art's tenure as CEO, we have made progress investing in capabilities that bode well for the future such as expanding the omni-channel customer experience and building our digital capabilities."
Fisher will also serve as president on an interim basis effective immediately. Gap said that the search for Peck's permanent replacement will be conducted by its board of directors.
In terms of its profit outlook, the clothing retailer said it's updating its adjusted diluted earnings per share guidance for the year to be between $1.70 and $1.75 per share, versus its previous guidance of between $2.05 and $2.15 per share.
"This was a challenging quarter, as macro impacts and slower traffic further pressured results that have been hampered by product and operating challenges across key brands," said Teri List-Stoll, executive vice president and chief financial officer.