Gap fired creative director Rebekka Bay in January, eliminating the position in the process. In February, the company hired Wendi Goldman, former co-president at L Brands Inc’s (LB.N) Victoria Secret, as executive vice president of Gap’s product design and development team.
Jeff Kirwan was named the Gap division’s global president in December.
Gap said it expected to close 175 of the 675 specialty stores under the Gap label over the next few years, resulting in annual sales losses of about $300 million.
The company also said it expects to incur one-time costs of $140 million to $160 million, primarily in the current quarter.
Gap reported sales of $16.44 billion for the year ended Jan. 31.
After the closures, Gap will have 500 specialty Gap stores in North America, as well as 300 outlet stores. The company also said it plans to close some stores in Europe, but did not specify how many.