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Gap ousts design chief, cuts forecast

Associated Press / May 6, 2011

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NEW YORK — Gap Inc. has ousted Patrick Robinson, the design director for its namesake brand. The disclosure yesterday came as the clothing seller cut its first-quarter earnings outlook.

The company, based in San Francisco, says it is searching for a successor.

Pam Wallack, who became head of the newly established Gap Creative Center three months ago, made the call to dismiss Robinson and will manage the design teams in the interim. “I’ve made the decision to make a change within our Gap adult design team,’’ Wallack said in a statement yesterday.

Robinson had been executive vice president of Gap Global Design for Adult and Body for four years. His departure follows a series of management and organizational changes aimed at reviving sales that have long sagged.

Separately, the retailer said revenue at stores open at least a year rose 8 percent in April, helped by a late Easter.

Analysts expected a 0.8 percent decline, according to Thomson Reuters. The Gap brand had only a 2 percent increase in its North America division, trailing the 11 percent increase posted at Banana Republic and the 14 percent gain at Old Navy. The figure fell 1 percent in its global unit.

Based on lower sales and squeezed profit margins, Gap lowered its earnings outlook for the first quarter. It now expects net income of 38 cents to 39 cents per share. Analysts expect net income of 40 cents.