GAP Gap, Inc.

Gap is treating the departure of Athleta CEO Maggie Gauger as a strategic reset for the struggling activewear brand, with CEO Richard Dickson telling employees that the leadership change creates an opportunity to rebuild its growth trajectory. Gauger left after about a year to join rival Lululemon, while Chief Marketing Officer Erika Everett is overseeing Athleta on an interim basis. The transition comes after nearly two years of negative comparable sales at Athleta, making the division a major weakness even as Dickson has stabilized Gap and Old Navy. Management warned investors in August that revenue pressures would continue to weigh on Athleta through the rest of the fiscal year. Gap said it has been reshaping Athleta’s long-term strategy and believes the leadership transition could accelerate structural changes and help rebuild customer engagement. Investors will closely watch how quickly the company appoints a permanent leader and executes a credible brand turnaround. $GAP $LULU