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US retailer Gap has ended a year-long search for a new chief executive, appointing a top Mattel executive behind the growth of the toymaker’s Barbie franchise to lead the apparel company’s turnaround efforts.
Richard Dickson will take the reins at Gap on August 22, ending a more than 22-year stint at Mattel that included his most recent role of chief operating officer.
Dickson, who was appointed to Gap’s board of directors in November 2022, will relieve Bob Martin, who has been interim chief executive since the departure of Sonia Syngal last July. Martin will remain Gap’s chair.
Gap, which has been struggling recently with excess inventory and dwindling consumer demand in a high inflation environment, is hoping Dickson’s experience at Mattel could help turn its fortunes around.
The retailer on Wednesday described Dickson as the “lead architect” in “reinvigorating” Mattel’s brands, including Barbie, Hot Wheels and Fisher-Price.
Mattel’s success with Barbie will be in focus when the company reports second-quarter earnings after Wall Street’s closing bell. The Barbie movie opened to a record-setting $155mn last weekend, spurring hopes about the company’s ability to leverage its famous brands into broader media franchises, even though sales of its iconic doll declined during the first three months of the company’s fiscal year.
Gap had sought to capture some of the hype surrounding the Barbie movie, having announced in April it would launch a Gap x Barbie apparel collaboration, followed by Hot Wheels-branded clothing later this year.
Gap shares jumped more than 7 per cent in Wednesday morning trading to a three-month high. The group’s stock fell 36 per cent last year amid a slowdown in discretionary spending that weighed on sales and profit.
Despite the positive reaction from investors on Wednesday, the market broadly remains wary of consumer stocks that are particularly exposed to any potential economic downturn.
Dickson said in a statement that under Martin’s year-long leadership, “the team has begun to truly reset the company for long-term success, establishing a new foundation that I’m eager to build on”.
Mattel executive Ynon Kreiz said Dickson “led the growth of some of the world’s most iconic and purpose-driven brands” and thanked him for his friendship.
Gap, which also owns the Banana Republic and Athleta brands, reported a decline in revenue and same-store sales in its first fiscal quarter. Last autumn, it ended a high-profile partnership with Ye, formerly known as Kanye West, that it hoped would generate $1bn in sales.
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