The Gap Downgraded To Underperform At Mizuho After Old Navy President's Departure

The Gap Inc. has been downgraded to underperform from neutral at Mizuho after news that the president of the Old Navy brand, Stefan Larsson, is leaving the company to join Ralph Lauren Corp. . The firm has also decreased the price target to $26. The Gap is down 7.5% in trading so far. The firm calls the departure a "bad omen" for Old Navy. "This is also, in our view, a major loss of brain trust for the company with both Gap and Banana Republic struggling to refine design and supply chain processes to regain footing in the softlines space," the note said.