Gap Inc. net sales, same-store sales down 1% for September

Sales in stores open at least one year were flat at Gap stores, fell 10 percent in Banana Republic and rose 4 percent at Old Navy.

CEO Art Peck wants things to change at Banana Republic.

The San Francisco company said in a pre-recorded call that women’s clothing sales “unexpectedly decelerated” at Banana Republic in September.

“With a strong design team in place, Banana Republic will not fill the open creative director role at this time”, a spokesperson told Refinery29 about GAP’s change to the brand. “It’s not as versatile or flattering as it should be given the price point”.

The creative director for Gap’s Banana Republic brand is stepping down after 18 months in that role. It lowered its 2015 earnings per share estimate to $2.50 from $2.77.

Banana Republic isn’t having the easiest time lately. “We believe that earnings visibility for the year has declined, with increased uncertainty regarding Old Navy’s holiday/fourth-quarter performance as it laps hard year-ago compares”, she noted. We continue to believe that the closing of underperforming stores will benefit margins in 2016, and that there remains low hanging fruit to improve Gap, mainly through changes in management, fit, style and processes.

“[The] drag from Banana Republic [is] likely more severe and will last longer than we anticipated”, the firm wrote. His comeback effort was dealt a blow last week, when Old Navy Global Brand President Stefan Larsson was lured away to become CEO of Ralph Lauren Corp.

At Old Navy, a search for a new president is under way. Over three years at Old Navy, Larsson spearheaded the brand’s growth and helped make it Gap’s best performer.