SAN FRANCISCO – July 26, 2011 – Gap Inc. (NYSE:GPS) today announced that John Ermatinger, president of Old Navy International is leaving the company, effective July 29. The company also reiterated its intention of expanding Old Navy outside North America, with the opening of its first store in Japan slated by the end of 2012.
Ermatinger recently took on the position to establish Old Navy International, after the company brought together its international operations into one division, run out of London and led by Stephen Sunnucks. Earlier, Ermatinger served as president of Asia Pacific for Gap Inc., overseeing directly operated stores for the Gap and Banana Republic brands and Outlet channels in Japan and China.
“I’m grateful for John’s leadership and commitment in helping to drive the international expansion over the years,” said Glenn Murphy, chairman and CEO of Gap Inc. “John has developed our brands to a strong position and our customers respond favorably with each subsequent store opening across Asia.”
Gap Inc. today announced that Lorenzo Moretti from its international division in London and Abinta Malik from its Old Navy headquarters in San Francisco will jointly lead the work to bring Old Navy stores to millions of new customers outside North America.
Moretti leads International business development and operations, after serving as the co-leader of the company’s 2010 entry into China. Previously, he led expansion efforts for Tesco and Marks & Spencer. Malik leads merchandising for Old Navy’s kids and baby divisions, and previously oversaw the online unit for the brand.
“It is exciting to see the next generation of leaders step up and into roles contributing to the growth of the company,” added Murphy. “Old Navy products became available online in many countries earlier this year, and quickly became our best sellers online in most of those markets. It’s that kind of interest and excitement that signals the tremendous opportunities for Old Navy outside North America.”
Forward-Looking Statements
This press release contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the following:
- Expanding Old Navy outside North America with first store in Japan by the end of 2012.
- Bringing Old Navy to millions of new customers outside North America.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company's actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following:
- the risk that changes in general economic conditions or consumer spending patterns will have a negative impact on the company’s strategies;
- the highly competitive nature of the company’s business internationally;
- the risk that the company will be unsuccessful in gauging fashion trends and changing consumer preferences;
- the risk that the company’s efforts to expand internationally may not be successful and could impair the value of its brands;
- the risk that the impacts of the March 2011 earthquake, tsunami and nuclear crisis in Japan, including reduced consumer spending, will have adverse effects on the company’s business, financial position and strategies;
- the risk that the company will be unsuccessful in identifying, negotiating, and securing new store locations effectively;
- the risk that comparable sales and margins will experience fluctuations;
- the risk that the company will be unsuccessful in implementing its strategic, operating and people initiatives;
- the risk that updates or changes to the company’s information technology (“IT”) systems may disrupt its operations;
- the risk that acts or omissions by the company’s third-party vendors, including a failure to comply with the company’s code of vendor conduct, could have a negative impact on its reputation or operations;
- the risk that changes in the regulatory or administrative landscape could adversely affect the company’s strategies; and
- the risk that the company will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits.
Additional information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2011, as well as its most recent Quarterly Report on Form 10-Q.
These forward-looking statements are based on information as of July 26, 2011. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
About Gap Inc.
Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. Fiscal year 2010 net sales were $14.7 billion. Gap Inc. products are available for purchase in over 90 countries worldwide through about 3,100 company-owned stores, about 175 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.
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