Gap cuts quarterly sales forecast; shares plunge

STORY: Shares of Gap opened more than 20% lower on Friday - to a near 2-year low - after the retailer slashed its sales outlook.

On Thursday, Gap said it now expects first-quarter sales to decline in the low to mid-teens percentage range from its prior guidance of mid to high-single-digit year-over-year declines.

Gap blamed the lower forecast for quarterly sales on what it called "execution challenges" at its Old Navy business and "macro-economic dynamics."

Gap also said the head of the Old Navy brand was leaving the company this week and that CEO Sonia Syngal would lead the team until a successor is hired.

Several apparel chains have struggled along with Gap to keep up with rising demand and manage inventories as supply chain snags have delayed shipments.

The retailer is set to report first-quarter results on May 26.