Gap Replaces Athleta CEO With Nike Exec. It’s Another Reset.

Gap’s Athleta has been struggling compared to the other retailer’s brands. (Roy Rochlin/Getty Images for Athleta)

Gap is shaking up its executive team again in an attempt to spruce up Athleta, its activewear brand.

In midmorning trading, Gap stock was down 1.2% to $20.17. Shares are down about 15% this year.

Nike veteran Maggie Gauger will succeed Athleta CEO Chris Blakeslee, who will step down on Friday, Gap said on Tuesday. Blakeslee will stay on as an adviser through the transition.

Gauger has been with Nike more than 20 years, most recently overseeing its North America Women’s business. She was responsible for driving growth, brand affinity, and customer acquisition.

“We are thrilled for Maggie Gauger to join as CEO of Athleta as we look to accelerate the brand’s reinvigoration,” said Gap CEO Richard Dickson in a statement.

Gap described Gauger’s background across strategy, merchandising, product creation, and general management as “critical assets to the future growth of Athleta.”

Blakeslee joined Gap in 2023, becoming one of the first high-profile leadership changes the company implemented in its quest to improve business. Before overseeing Athleta, he was president of sister companies Alo Yoga and Bella+Canvas.

The market heralded the appointment. Under Blakeslee, Alo Yoga became a formidable competitor in the activewear space, positioning itself as a favorite of influencers and A-listers. Investors hoped he would bring about a similar change to Athleta, but efforts fell short.

Athleta’s sales have improved—full-year same-store sales growth was flat in fiscal 2024, compared with 12% decline in fiscal 2023—but the brand still lags behind Gap’s other names.

As of Gap’s latest fiscal quarter ended May, Athleta has posted two consecutive quarters of same-store sales declines. The company’s other three brands—Old Navy, Gap, and Banana Republic—reported increases or flat yearly sales.

“Over the past two years, Chris has led the early stages of Athleta’s reset, recentering the brand to win with innovative performance product and refining the brand’s point of view, helping to position Athleta for the future,” Dickson said.

Write to Sabrina Escobar at sabrina.escobar@barrons.com