Gap Inc. seeks new leadership for its upscale brand after a challenging financial year
Sandra Stangl has stepped down as president and chief executive officer of Banana Republic, a division of Gap Inc. The company has announced that it is actively searching for Stangl’s successor to lead the upscale lifestyle brand.
During her tenure, which began in December 2020, Stangl spearheaded efforts to rejuvenate Banana Republic’s image and product offerings. Despite these efforts, the brand has faced financial challenges. In the fourth quarter of 2023, Banana Republic reported net sales of $567 million, marking a 2 percent decline from the previous year. Comparable sales for the same period also fell by 4 percent.
For the full year, Banana Republic’s net sales totaled $1.9 billion, an 8 percent decrease from 2023, with comparable sales down 7 percent. The brand has struggled with several initiatives, including the Banana Republic Home collection, which has reportedly not performed as expected.
Richard Dickson, President and CEO of Gap Inc., addressed the leadership change in an internal memo circulated Wednesday. “As we close out the first quarter of the year, Sandra and I have agreed to transition to new leadership for Banana Republic,” Dickson stated. He acknowledged the efforts made under Stangl’s leadership to elevate the brand’s aesthetic and explore new categories, adding, “We see a significant opportunity for this brand, and we have made progress over the past quarter setting the stage for improved future performance.”
Dickson emphasized the ongoing efforts across Gap Inc.’s brands to fix fundamentals to drive relevance and revenue. “At Banana Republic, Sandra and the teams have begun to lay the foundation to reestablish the brand to thrive in the premium lifestyle space,” he noted. He expressed optimism about identifying a new leader who will further the vision and potential of Banana Republic.
In the interim, Dickson will work closely with the Banana Republic leadership team to advance the brand’s goals for fiscal year 2024, details of which are expected to be discussed at Banana Republic’s Town Hall meeting scheduled for Thursday.
Dickson concluded his memo with an appreciation for Stangl’s contributions: “Please join me in thanking Sandra for her many contributions and supporting the Banana Republic teams in a smooth transition.”