• by Sarah Mahoney , Yesterday

Gap Inc. has appointed Nike exec Maggie Gauger to lead Athleta, hoping to jumpstart the struggling activewear brand. Gauger, currently vice president and general manager of Nike’s North American women’s division, will become president and CEO, replacing Chris Blakeslee, who is stepping down.

The announcement comes following yet another disappointing quarter for the banner, with sales falling 6% to $308 million, and comparable sales declining 8%. “Work is being done to reset the brand and improve product and marketing, which will take time,” the company said in last month’s earnings report.

Gap Inc. overall is gaining momentum, with comparable sales rising for the fifth straight quarter — a trend CEO Richard Dickson credits to his “brand reinvigoration playbook,” already delivering at Old Navy and the Gap banners.

Dickson describes Gauger as a transformational leader with strong product instincts and a deep connection to women and girls. “This combination of skills and experiences will equip her to lead Athleta into its next chapter of growth—rooted in purpose, performance, and people,” he says in the announcement.

Gauger isn’t the first Nike vet to join Athleta. Back in 2019, track legend  Allyson Felix left Nike for Athleta, partnering with the brand and joining its Power of She Collective, which also includes Katie Ledecky, the world’s most decorated swimmer, as well as athletes from the world of basketball, golf, skiing, soccer and tennis.

However, just like Gap’s other divisions, Athleta faces stiff competition, not only from established brands like Nike and Lululemon, but also from value players, including private-label activewear lines at Dick's Sporting Goods and Target.

“We do not think Athleta has achieved a competitive advantage,” writes David Swartz, who follows the Gap for Morningstar. “Recent results have been disappointing.”