• February 12, 2007

Another key Gap executive--Charlotte Neuville, head designer for North America--is leaving, and the company said it will reach from outside its own thinning ranks to replace her. Ever since CEO Paul Pressler stepped down last month, there's been a constant stream of high-level departures, as Gap struggles to regain its fashion footing.

The company also announced that same-store sales for the quarter, which ended Feb. 3, fell 7%, compared to a decline of 6% in the fourth quarter of the prior year. At Old Navy, quarterly sales took a 9% swan dive, versus a 6% decline last year; at Gap North America, sales fell 8%, versus a decline of 7% in the same quarter a year ago. Banana Republic was the only bright spot, with same-store sales climbing 3%, versus a negative 5% last year. - Sarah Mahoney