Gap Inc. was cut to neutral by both Sterne Agee and Janney analysts on Thursday, a day after it reported disappointing September same-store sales at its Gap-brand stores. Gap also surprised Wall Street with the announcement that its well-respected CEO Glenn Murphy is stepping down and will be succeeded by Art Peck, who leads Gap's growth, innovation and digital initiatives. "While Art Peck has enjoyed success in the various roles he has undertaken at (Gap), replacing Glenn Murphy will be no small feat," said Sterne Agee analyst Ike Boruchow. Gap slumped 11% in early trading.
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