Gap CEO defends struggling Athleta brand despite slower turnaround Gap CEO Richard Dickson acknowledges that the turnaround for the Athleta brand is taking longer than anticipated, with sales and comparable figures showing declines in the first quarter. Despite these struggles, the company is committed to rebuilding Athleta, citing streamlined assortments, improved leadership, and new merchandise as reasons for optimism. Gap expects slight improvement in the second half of the year, believing the brand has long-term growth potential.

• Gap CEO Richard Dickson stated the turnaround at Athleta is taking longer than expected.
• Athleta’s first-quarter sales fell 12% to $270 million, with comparable sales declining 11%.
• Management described Athleta’s rebuild as “slower,” expecting similar trends in the second quarter.
• Weakness at Old Navy also impacted Gap’s overall results, overshadowing strength in other brands.
• Gap is committed to rebuilding Athleta under CEO Maggie Gauger, who joined last August.
• Improvements include streamlining the assortment, enhancing creative execution, and rolling out new merchandise.
• Athleta is considered an important long-term growth opportunity for Gap, ranking as the fifth-largest activewear brand.
• Gap expects slight improvement in Athleta’s performance in the second half of the year.