Shares in Gap fell as much as 15 per cent today, as uncertainty over the future of the clothing giant swirled the day after chief executive Mr Mickey Drexler announced he will leave.
Shares of San Francisco-based Gap were down $2.19, or 14 per cent, at $13.81 on the New York Stock Exchange, off an earlier low at $13.60. Turnover was more than 11.6 million shares.
Gap, which has seen sales at its stores open at least a year fall for more than two years and which posted a net loss of $7.8 million for 2001, is in the midst of a turnaround effort. Gap is now focusing on selling casual basics like khaki pants and white shirts.
Considered the brains behind Gap's meteoric growth into a chain of 4,200 stores, Mr Drexler will stay until a successor is named. He has been at the company since 1983 and is legendary for his talents as a merchant.
Mr Drexler is also widely credited as the man responsible for dressing down the American workplace, outfitting millions of office workers in khaki pants and casual shirts instead of suits.
But Mr Drexler was also responsible when Gap decided to chase a younger, more fashion-conscious customer by adding items like glittery tops and leather jeans to its product mix. The move alienated Gap's older T-shirt and khakis customer, and sales and profits began to slide.