Gap CEO Art Peck is out

Seattle, Washington, USA - May 27, 2012: The logo and word mark of Gap, mounted above the entrance to the store in downtown Seattle.

Gap CEO Art Peck is leaving the company.

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The retailer announced he will depart after a "brief transition." Robert J. Fisher, the company's chairman of the board, will also serve as president and CEO on an interim basis.

Shares tumbled in the extended session by double digits and have fallen 31 percent this year.

Art Peck (Company)

The news was delivered as the company updated its financial guidance. Gap cuts its full-year revenue outlook and acknowledged industry headwinds.

“This was a challenging quarter, as macro impacts and slower traffic further pressured results that have been hampered by product and operating challenges across key brands,” Gap Chief Financial Officer Teri List-Stoll said in a statement.

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All three brands -- Gap, Banana Republic and Old Navy -- reported negative sales during the quarter.

The company is also set to spin off Old Navy in 2020 with plans to double its stores to reach 2,000, all in North America and in underserved small markets, according to a September investor presentation.  The retailer is hoping its apparel brand, which ranks second to Target, will be able to attract more customers.

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