• January 11, 2007

Less than a week after reporting yet another decrease in sales, Gap Inc. yesterday announced the departure of two key execs. Denise Johnston, president of Gap Adult, is leaving, as is Ivy Ross, Old Navy's executive vice president of product design.

"We are clearly disappointed with Gap and Old Navy's holiday sales and overall performance for the year," Gap President Paul Pressler said in a release accompanying the dismal results. "Given that we did not gain the traction we had expected, the management team, with the active involvement of our board of directors, is currently reviewing Gap and Old Navy's brand strategies. We are committed to making the necessary changes to improve performance."

On Wall Street, speculation has been rampant this week that Gap, which reportedly hired Goldman Sachs as a strategic adviser--might be for sale, or preparing to spin off some of its business units, which include Old Navy and Banana Republic.

--Sarah Mahoney