Gap Inc. CEO Art Peck is stepping down, effective immediately, the company announced on Thursday.
Peck, who joined the company 15 years ago and has led Gap as CEO since 2015, will cede his leadership role to the board member Robert Fisher. Fisher will serve as interim CEO after a "brief transition period," and Peck will also vacate his board seat, according to a company press release.
"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," Fisher said in a statement. "Under Art's tenure as CEO, we have made progress investing in capabilities that bode well for the future, such as expanding the omnichannel customer experience and building our digital capabilities."
The company did not provide a reason for Peck's departure.
In tandem with the announcement, Gap also reported significant sales declines for the third quarter of 2019, including a 7% drop in comparable sales for its namesake brand, a 3% decline for Banana Republic, and a 4% dip for Old Navy. Across the entire portfolio — which also includes Intermix, Hill City, Janie & Jack, Athleta, Piperlime, and Forth & Towne — comparable sales decreased by 4%.
The results are the latest in a series of consecutive quarters of underperforming sales, thanks to declining foot traffic and high levels of surplus inventory. Earlier this year, Gap announced it would spin off Old Navy, its top-performing brand, into an independent company. However, this is Old Navy's second consecutive quarterly sales fall, after experiencing its first decline in three years in the second quarter of 2019.
Despite sales woes, Peck received a 33% pay increase in 2018, according to a Securities and Exchange Commission filing. When combined with stock awards, Peck's total salary package reached a total of $20.8 million.
Peck also received criticism in September for describing Banana Republic as a "skinny brand," when commenting on the brand's lack of size inclusivity. Banana Republic sells clothing up to size 16 in stores and size 20 online, though in an interview with Bloomberg, Peck said he would like to go up to size 26 or larger.
"Banana Republic has historically been known as a skinny brand," Peck told Bloomberg. "The industry is overdue to really embrace the communities in a representative way that we all do business in."
