Gap Inc.’s (GPS) President and CEO Art Peck is stepping down immediately, the company said in a statement on Thursday.

What Happened 

Peck’s resignation comes at a time when the San Francisco-based retailer is struggling to maintain its sales numbers.

The company’s earnings fell 42% in the second quarter, to 44 cents per share from 76 cents in 2018.

Its performance in the first quarter of 2019 was even worse, with net income falling to 24 cents from 42 cents a year earlier.

Gap said it expects adjusted earnings per share (EPS) between 50 and 52 cents for the third quarter. 

The company also updated its adjusted EPS expectations for the whole year to be lower, between $1.70 to $1.75, down from an earlier $2.05 to $2.15.

“This was a challenging quarter, as macro impacts and slower traffic further pressured results that have been hampered by product and operating challenges across key brands,” Teri List-Stoll, Gap’s chief financial officer, said about the third-quarter performance.

What's Next

Robert J. Fisher, the company’s non-executive chairman and a member of the Gap’s founding family, will take over as interim CEO until a suitable replacement is found, the company said.

“As the Board evaluates potential successors, our focus will be on strong leadership candidates with operational excellence to drive greater efficiency, speed, and profitability,” Fisher said in a statement.

Price Action

Gap’s shares closed at $18.06 on Thursday but fell to $17.02 in after-hours trading at press time