Gap shares plunged Friday.
Wall Street is worried about what'll happen to the apparel giant's most successful brand, Old Navy, after the retailer said its CEO would immediately step down.
Chief executive Art Peck had planned to split Old Navy into a separate company.
That would enable the company to focus on shutting down money-losing stores, offering more products online, and revitalizing its Gap and Athleta athleisure wear brands.
Now, analysts wonder whether the company will be forced to delay the spin off or scrap it altogether.
Old Navy has long offered fashion at low price points and proven itself the lifesaver for the parent company.
The Gap brand, once a trend setter, has struggled to keep pace with fast-fashion rivals Zara and H&M.
But now, even Old Navy is weighing on sales.
The company sees its total same-store sales dropping 4% in the third quarter, dragged down by declines across all of its key brands.
The dour news pulled down Gap shares 7% at the market open Friday, extending their nearly 30% loss this year.