U.S. specialty apparel retailer Gap Inc. has experienced weak operating results at its Gap and Banana Republic brands in recent quarters, a trend that we don't expect to improve meaningfully in the near term. The company recently announced the departure of Stefan Larsson, president of its largest unit Old Navy, who has led Old Navy's success in the past three years with consistent positive same-store sales. We are revising the outlook to negative from stable, as we believe the recent departure of this key executive adds uncertainty to prospects for reversing the company's weak operating performance. In addition to the need to replace the head of the best performing brand, sharing of operational leadership expertise from Old Navy to other
