Gap board picks new CEO amid financial struggles
July 26 (UPI) -- Clothing retailer Gap Inc.'s board of directors Wednesday announced Richard Dickson has been appointed company CEO, effective Aug. 22.
Gap cut 1,800 jobs after slow sales at Old Navy helped compile a net loss of $162 million for the quarter ending in April.
That was on top of 500 jobs cut in September 2022.
In October of that year the company removed Kanye West's Yeezy clothing line after West's anti-Semitic remarks.
Gap has been financially struggling, reporting 2022 fourth quarter losses of $273 million in March as sales declined 6% from the previous year.
"Gap Inc. is a portfolio of iconic brands, known for having defined American style with bold thinking and making quality fashion accessible to millions," Dickson said in a statement. "But it's the work ahead that excites me most -- the chance to work hand-in-hand with the teams to evolve Gap Inc. for a new era."
Dickson's most recent position prior to being appointed CEO of Gap was as president and CEO of Mattel.
"Richard has invaluable expertise in areas critical to the work Gap Inc. is doing to strengthen the company for the long term. And we are thrilled to have his visionary leadership as the company redefines the future potential of Gap Inc. and its renowned American fashion brands," said Gap board member Mayo A. Shattuck III in a statement.
Interim Gap CEO Bobby Martin will stay as chair of the board to ensure a smooth transition.
"Gap Inc. has a rich heritage, with brands that have great meaning in people's lives. Amidst a deliberate and thoughtful search process, it became clear that Richard is destined for this role at this moment. His experience as a proven transformational brand builder and belief in the power of inclusivity, make him a perfect fit for Gap Inc," Martin said in a statement.
Gap, Inc. includes the Old Navy, Gap, Banana Republic and Athleta brands.
Fiscal year 2022 net sales were $15.6 billion, according to the company.
