economy
Gap CEO defends struggling Athleta brand despite slower turnaround
Gap CEO Richard Dickson said Athleta’s turnaround is taking longer than expected, calling 2026 a “rebuild year."
TL;DR
- Gap CEO Richard Dickson stated the turnaround at Athleta is taking longer than expected.
- Athleta's first-quarter sales fell 12% to $270 million, with comparable sales declining 11%.
- Management described Athleta's rebuild as "slower," expecting similar trends in the second quarter.
- Weakness at Old Navy also impacted Gap's overall results, overshadowing strength in other brands.
- Gap is committed to rebuilding Athleta under CEO Maggie Gauger, who joined last August.
- Improvements include streamlining the assortment, enhancing creative execution, and rolling out new merchandise.
- Athleta is considered an important long-term growth opportunity for Gap, ranking as the fifth-largest activewear brand.
- Gap expects slight improvement in Athleta's performance in the second half of the year.