Banana Republic President Leaving Gap to Head Chanel

Maureen Chiquet is going from casual chic to haute couture.

Chiquet is stepping down as head of Gap Inc.’s Banana Republic clothing division to become president of luxury fashion retailer Chanel Inc., the companies said Tuesday.

Although there’s been considerable leadership shuffling at San Francisco-based Gap since former Walt Disney Co. executive Paul Pressler took the reins in September, analysts say Chiquet probably is leaving simply because she got a better job.

“I think this is a case of getting an offer she just couldn’t refuse,” said Dorothy Lakner, an analyst at CIBC World Markets. “How could you turn down Chanel and Paris?”

The executive, who will remain at Gap until the end of May, began her career in Paris with L’Oreal, where she became a brand manager. Her husband is French.

Chiquet and her family will move to Paris in September for a year, as part of her “introduction to our business,” Chanel said. After that, she will work from the New York office.

Investors took the news in stride. Gap’s stock closed Tuesday at $16.64, up 20 cents, in New York Stock Exchange trading.

Gap has posted earnings increases in the last couple of quarters, after struggling with sinking sales for more than two years. In February and March, the Banana Republic division posted drops in comparable-store sales; the Gap and Old Navy divisions fared better. Banana Republic’s problems have never been as troubling as those that have plagued the flagship Gap brand, analysts say.

Banana Republic is Gap’s smallest division, representing about 13% of revenue.

At privately held Chanel, Chiquet will succeed Arie L. Kopelman, who will become vice chairman, the company said.