Gap faucets prime Mattel executive to be its new CEO

Gap introduced Wednesday it is poached a leading Mattel govt to be its new CEO as the clothing big seeks to reverse an ongoing profits slump and get back its relevancy in the manner sector.

Richard Dickson, the president and main functioning officer at Mattel, was picked out as Gap’s top boss after a year-lengthy research that commenced previous summer time when previous CEO Sonia Syngal left the firm.

Considering the fact that then, Gap’s chairman Bob Martin has been serving as interim CEO – a situation he did not anticipate to keep as lengthy as he experienced as the company struggled to find the proper human being for the part, he explained to traders throughout a May well earnings simply call. 

Dickson, who has been a member of Gap’s board given that November 2022, will go away his current position at Mattel on August 3 and begin the new role on August 22, earning an annual base income of $1.4 million. Martin will keep on being chair of the board.

“Gap Inc. is a portfolio of legendary brands, acknowledged for acquiring defined American type with bold thinking and making quality trend available to thousands and thousands. But it’s the work in advance that excites me most – the likelihood to work hand-in-hand with the teams to evolve Hole Inc. for a new era,” Dickson claimed in a assertion. “Underneath Bobby’s management, the team has started to actually reset the organization for lengthy-term success, developing a new foundation that I am keen to develop on.”

Martin referred to as Dickson “a perfect match for Hole.”

Hole shares received 6% on Wednesday following the information, while shares of Mattel fell somewhat.

All through his tenure with Mattel, Dickson is credited with reviving the Barbie franchise and developing the toymaker’s other leading brand names, including Warm Wheels and Fisher-Value, according to Mattel.

He first joined Mattel in 2000 and presently prospects its global brand portfolio, overseeing approach, brand marketing and advertising, layout and enhancement. In the position, he also oversees franchise administration, which include licensing and merchandising, are living gatherings and digital gaming.

In the leadup to the very-predicted Barbie motion picture, Mattel entered into licensing agreements with around 100 makes, which includes Gap, to promote a variety of Barbie-themed products, turning the legendary pink doll into a ubiquitous brand name.

Dickson earlier held positions at Bloomingdales and The Jones Team. The Wall Avenue Journal first reported his appointment to Hole. 

He leaves Mattel at a substantial-point in the toymaker’s historical past as it revels in the results of its Barbie motion picture —and joins Hole as the retailer struggles to suitable-sizing its business enterprise and acquire back again customers.

The firm has been grappling with a a long time-long product sales slump and a series of management shakeups across its portfolio of makes, which consists of Athleta, Banana Republic, Old Navy and its namesake banner. 

Considering that previous tumble, Gap has laid off more than 2,000 personnel in an effort and hard work to streamline functions and slice prices. 

In its most recent quarter ended April 29, income were being down 6% from the yr-ago period of time to $3.28 billion. It claimed a quarterly internet decline of $18 million, advancement from a decline of $162 million in the prior 12 months.