Gap CEO Art Peck is retiring

• Gap Inc. CEO Art Peck is retiring as CEO, taking effect immediately, according to a company press release Thursday. Current board member Robert J. Fisher will serve as interim CEO after a "short transition period."
• Peck has been CEO since 2015 and has worked in various roles within the company for the past 15 years.
• As part of the announcement, Gap also reported significant sales declines for the third quarter of 2019, including a 4% decline in comparable sales across the portfolio.
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Gap Inc. CEO Art Peck immediately resigns, the company announced Thursday.

Peck, who joined the company 1[ads1]5 years ago and has led Gap as CEO since 2015, will step down from his leadership role to current board member Robert J. Fisher. Fisher will serve as interim CEO after a "short transition period," and Peck will also vacate the board seat, according to a company press release.

"On behalf of the entire board, I would like to thank Art for his many contributions to Gap Inc., which spans a nearly 15-year career with the company," Fisher said in a statement. "During Art & # 39; s hiring as CEO, we have made progress in investing in capabilities that are good for the future, such as expanding the omni-channel customer experience and building our digital capabilities."

In line with the announcement of Peck's departure, Gap also reported significant third-quarter sales declines in 2019, including a 7% fall in comparable sales for its namesake, a 3% decline for Banana Republic, and a 4% dip for the Old Navy. Across the portfolio – which also includes Intermix, Hill City, Janie & Jack, Athleta, Piperlime and Forth & Towne – comparable sales fell by 4%.

The results are the latest in a series of consecutive quarters of underperforming sales, thanks to falling foot traffic and high levels of surplus inventory. Earlier this year, Gap announced it would spin off the top-performing Old Navy into its own independent company. However, this is Old Navy's second drop in sales, after experiencing its first decline in three years in the second quarter of 2019.

Despite sales shortages, Peck received a 33% pay rise in 2018, according to a Securities and Exchange Commission filing. When combined with stock prices, Peck's total salary package reached a total of $ 20.8 million.

Peck was also criticized in September for describing the Banana Republic as a "thin mark" when commenting on the brand's lack of inclusion in size. Banana Republic currently sells clothing up to size 16 in stores and size 20 online, although in an interview with Bloomberg he said he wants to go up to size 26 or larger.

"Banana Republic has historically been known as a lean brand," Peck told Bloomberg. "The industry is overdue to really embrace the communities in a representative way that we all do business.