March 9 (UPI) -- Gap announced disappointing fourth-quarter results on Thursday, as the retailer announced several executive changes to turn things around.
The company reported losses of $273 million, up from $16 million a year before. Its $4.24 billion in sales were down 6 percent from the previous year. Online sales, which make up nearly of the company's total sales, were down 10%.
Bob Martin, Gap executive chairman and interim CEO, said in a statement that the company was getting closer to choosing a new leader.
"The board is getting close to choosing the next CEO for Gap Inc.," Martin said. "As a result of the work we have underway to build a stronger foundation and restore the company's creative muscle, we are optimistic that this will provide our new leader with a quicker ramp in driving consistent, profitable growth over the long term."
To minimize losses, the company announced several other executive shake-ups. The position of chief growth officer, which is held by Asheesh Saksena, will be eliminated.
It also announced that Mary Beth Laughton, the president and CEO of Athleta, which is part of Gap, would be leaving.
"We believe Athleta has incredible potential, but it has suffered from product acceptance challenges over the past several quarters," Martin said. "As we look to capitalize on this potential and remain competitive amidst a dynamic landscape, we believe now is the right time to bring in a new leader who can position Athleta for long-term success."
