April 21 Reuters Gap Inc slashed its forecast for quarterly sales on Thursday, blaming execution challenges at its Old Navy brand and macroeconomic dynamics, sending shares of the retailer down 12 in extended trading.

Gap also said the head of its Old Navy brand, Nancy Green, was leaving the company this week and the company39;s Chief Executive Officer Sonia Syngal would lead the team until a successor gets hired.

Several apparel chains, including Gap, have struggled to keep up with rising demand and managing their inventories as supply chain snags delay shipments.

Gap now expects firstquarter sales to decline in the low to midteens percentage range from its prior guidance of mid to highsingledigit yearoveryear declines.

The retailer, which will report firstquarter results on May 26, said it had to take an aggressive approach to balancing inventory that led to increased marketing promotions, especially at Old Navy.

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Krishna Chandra Eluri

Source Reuters