From Mattel to Gap: Richard Dickson Announced as Gap CEO After Former Chief Fired
Key takeaways
- Gap has hired Mattel’s COO and president, Richard Dickson, as its next CEO
- The ailing retailer has been on the hunt for a new chief executive for a year as sales have declined in the meantime
- Gap shares soared 7.7% at the news
Richard Dickson, Mattel’s COO and president, is leaving behind the world of toys to take on a new challenge: reversing ailing retailer Gap’s fortunes. The announcements ends a long drought without a leader for the rudderless Gap, whose ailing market cap has been of increasing concern to investors. Let’s get into the details.
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Gap’s new CEO announced
Top Mattel executive is officially taking the CEO position at Gap that has stood vacant for a year. Branding expert Dickson has spent most of his career at Mattel but also has retail experience, having worked at Bloomingdale’s and Nine West previously.
Dickson had already joined Gap’s board in November 2022 and the two companies have enjoyed a successful partnership selling Barbie and Ken-branded apparel. The move comes after Gap fired its former CEO, Sonia Syngal, last summer after two-and-a-half years in the top job.
Gap has struggled to reinvent itself recently, having seen sales drop 6% and losing $202 million in the last fiscal year. While Gap has around $15 billion in annual sales, three times Mattel’s, its market gap is just $3.4 billion. Gap will be looking to Dickson to revitalize the Gap brand and improve sales.
Wall Street’s reaction
With Gap firing its CEO last summer, the search for a replacement had been a long road — so investors were pleased to see some certainty at the retailer. Gap’s shares were up 7.71% on Wednesday, though the stock’s performance has declined 12% overall this year.
Mattel is enjoying a renaissance thanks to the wild success of its first foray into the cinematic world with the Barbie movie. It had the best opening of the year so far and broke a record for the biggest opening weekend for a female director. Mattel’s share price has soared 15.5% in the last month as anticipation for the film mounted, leaving the stock 19% up this year.
The bottom line
With a retail background and a successful track record at Mattel, Dickson, on paper, looks like a good fit for Gap’s top job. Now, the pressure is on as investors look for signs of improvement in the company’s financials over the next fiscal year.
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