Gap Inc. (NYSE) shares fell more than 11% after Gap Inc. announced this week that Nancy Green, Old Navy president and CEO, will be leaving Old Navy. Following the announcement, the company decreased its first-quarter sales estimates.

Sonia Syngal (CEO of Gap Inc.) will collaborate closely with the Old Navy Team until the new Brand President can be identified via an external search.

Gap stated that it sees its first quarter sales declining in the low- to mid-teens, as opposed to the prior guidance which saw declines of the high single digits.

Additionally, Old Navy has seen an increase in promotional rates due to the aggressive approach it takes with assortment balancing.

Gap shares were 19% lower year-to-date, just before the dramatic after-hours slump.

By Davit Kirakosyan