Gap Inc has announced the promotion of merchandising executive Gary Muto to the position of president of Banana Republic.

Mr Muto, 41, will report to Gap Inc president and CEO Millard Drexler. Previously he was executive vice president of merchandising at Banana Republic, reporting to Mr Drexler.

"Gary understands Banana Republic and its customers," Mr Drexler said. "As head merchant, he helped drive Banana Republic's growth and create its distinctive position in the marketplace. Gary's leadership skills and merchandising expertise will help us continue to grow and evolve the brand."

Mr Muto will oversee all aspects of running the brand. Product design will continue to report to Mr Drexler.