Gap Plans to Use Athleta Leader Exit to Rebuild Slumping Brand

Gap Inc. sees the loss of its top executive at the struggling Athleta brand as an opportunity to “reimagine the brand’s path forward.”

Maggie Gauger, who led Athleta for a little more than a year, is moving to Lululemon Athletica Inc., leaving the Gap-owned athleticwear brand without a top executive. The brand is significantly underperforming the rest of Gap’s businesses.

“Athleta has a meaningful place in Gap Inc.’s portfolio,” Chief Executive Officer Richard Dickson said in a memo to employees that was reviewed by Bloomberg. “At the same time, we know there is more work ahead and rebuilding the brand will take time, focus and discipline.”

Athleta has posted negative comparable sales for nearly two full years — highlighting the brand’s difficulties even as Dickson has made progress elsewhere. In August, Gap said it expects Athleta sales to remain pressured through the rest of the year.

The company has “been actively shaping Athleta’s next chapter and the changes needed to position the brand for long-term growth,” Gap said in a statement. “The transition enables us to accelerate that work, strengthen our connection with customers and unlock Athleta’s full potential.”

Athleta Chief Marketing Officer Erika Everett will run the brand on an interim basis.