Gap Inc.

Gap sinks after CEO of ailing flagship brand is sent packing

Gap shares fell the most in 15 months after the company embarked on a search for a new leader of the flagship brand, citing shaky operations and disappointing profit growth.

Jeff Kirwan, president and chief executive officer of the Gap brand, will leave the company and a search is underway for a replacement, the San Francisco-based retailer said Tuesday. In the interim, Brent Hyder, executive vice president of global talent and sustainability, will oversee the unit.

Kirwan took over the Gap brand in 2014 with the chain in turmoil as sales continued to slide. He overhauled its operating model to improve the ability to test products and quickly stock designs that sold well. He...