Richard Dickson, CEO of Gap Inc.
Courtesy: Gap Inc.
Gap announced Wednesday it’s poached a top Mattel executive to be its new CEO because the apparel giant seeks to reverse an ongoing sales slump and regain its relevancy in the style industry.
Richard Dickson, the president and chief operating officer at Mattel, was chosen as Gap’s top boss after a year-long search that began last summer when former CEO Sonia Syngal left the corporate.
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Since then, Gap’s chairman Bob Martin has been serving as interim CEO during a longer-than-expected seek for a substitute. During a May earnings call, Martin told investors he didn’t expect to hold the position as interim CEO so long as he had.
Dickson, who has been a member of Gap’s board since November 2022, will leave his current position at Mattel on August 3 and begin the new role on August 22, earning an annual base salary of $1.4 million. Martin will remain chair of the board.
“Gap Inc. is a portfolio of iconic brands, known for having defined American style with daring considering and making quality fashion accessible to thousands and thousands. But it surely’s the work ahead that excites me most – the prospect to work hand-in-hand with the teams to evolve Gap Inc. for a new era,” Dickson said in an announcement. “Under Bobby’s leadership, the team has begun to truly reset the corporate for long-term success, establishing a new foundation that I’m eager to construct on.”
Martin called Dickson “an ideal fit for Gap.”
Gap shares gained 6% on Wednesday following the news, while shares of Mattel fell barely.
During his tenure with Mattel, Dickson is credited with reviving the Barbie franchise and growing the toymaker’s other top brands, including Hot Wheels and Fisher-Price, according to Mattel.
Margot Robbie will star as Barbie in an upcoming movie from Mattel and Warner Bros.
Mattel | Warner Bros.
He first joined Mattel in 2000 and currently leads its global brand portfolio, overseeing strategy, brand marketing, design and development. Within the position, he also oversees franchise management, including licensing and merchandising, live events and digital gaming.
Within the leadup to the highly-anticipated Barbie movie, Mattel entered into licensing agreements with over 100 brands, including Gap, to sell a variety of Barbie-themed merchandise, turning the enduring pink doll right into a ubiquitous brand.
Dickson previously held positions at Bloomingdales and The Jones Group. The Wall Street Journal first reported his appointment to Gap.
He leaves Mattel at a high-point within the toymaker’s history because it revels within the success of its Barbie movie —and joins Gap because the retailer struggles to right-size its business and win back customers.
The corporate has been grappling with a years-long sales slump and a series of leadership shakeups across its portfolio of brands, which incorporates Athleta, Banana Republic, Old Navy and its namesake banner.
Since last fall, Gap has laid off greater than 2,000 staff in an effort to streamline operations and cut costs.
In its most up-to-date quarter ended April 29, sales were down 6% from the year-ago period to $3.28 billion. It reported a quarterly net lack of $18 million, improvement from a lack of $162 million within the prior yr.