Clothing retailer Gap Inc announced a CEO change on Monday. The company parted ways with Sonia Syngal, who stepped down from the position after two and a half years. Bob Martin, who serves as the company’s executive chairman of the board, will step in as an interim CEO. Martin previously worked with Dillard’s Inc. and Walmart before joining Gap in the early 2000s.
“I am thankful to have the board’s support in stepping down, ushering in a new opportunity for a fresh perspective and rejuvenated leadership to carry Gap Inc. forward,” said Syngal in a company-released statement.
The news about Syngal’s exit has resulted in a notable hit on the company’s shares. Gap stock (GPS) lost close to five percent of its value on Tuesday and dipped to $8.32 from $8.76 on Monday. It closed at $8.31 in extended trading. GPS has now lost more than half of its value in 2022.
Sonia Syngal took over as CEO of Gap back in early 2020 after a successful stint with the company’s Old Navy brand. Syngal was dealt a tough hand as the pandemic kicked in shortly after she took the job, but she managed to navigate the unusual circumstances impressively. It turned out that the real challenge was life after the pandemic.
Gap failed to adjust to the changing market while the supply chain issues also played a part in the company’s struggles. It ended the first quarter of 2022 with $162 million in losses, compared to a $166 million profit in 2021. As a result, the company decided it was time for another change. It remains to be seen whether they make it right this time.