Gap’s Sales Miss Estimates, Underscoring New CEO’s Challenge

**Gap misses sales estimates, underscoring new CEO’s challenge**

* Gap Inc. reported a wider-than-expected loss for the fourth quarter as sales missed estimates, piling pressure on new CEO Sonia Syngal to revive the struggling retailer.

* The company reported a net loss of $492 million for the three months ended Feb. 2, compared with a loss of $21 million a year earlier. On an adjusted basis, the company lost 73 cents per share, compared with analysts’ estimates of a loss of 60 cents per share, according to Refinitiv IBES.

* Sales fell 5% to $4.34 billion, missing analysts’ expectations of $4.39 billion.

**Gap’s turnaround plan**

* Syngal, who took over as CEO in February, has been tasked with turning around the company’s fortunes. She has outlined a three-year turnaround plan that includes closing stores, investing in e-commerce, and improving the company’s product assortment.

* As part of the plan, Gap has already announced plans to close 230 stores in North America over the next two years. The company is also investing in new technology and hiring new talent.

**Challenges ahead**

* Despite the turnaround plan, Gap faces a number of challenges, including competition from online retailers and fast-fashion chains.

* The company is also facing pressure from activist investor Jana Partners, which has been pushing for changes at the company.

* In a statement, Syngal said that the company is .

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