Investing.com -- Gap Inc. (NYSE:GPS) has announced that Mattel's (NASDAQ:MAT) chief operating officer Richard Dickson will take over at the helm of the clothing retailer, ending a year-long search for an executive to lead a turnaround effort.
In a statement, Gap said Dickson, who will start as president and chief executive officer on Aug. 22, was a "lead architect" in toymaker Mattel's push to reinvigorate brands like Barbie and Hot Wheels.
"Richard has invaluable expertise in areas critical to the work Gap Inc. is doing to strengthen the company for the long term," said Mayo A. Shattuck, lead independent director at Gap. "[W]e are thrilled to have his visionary leadership as the company redefines the future potential of Gap Inc. and its renowned American fashion brands."
The move comes as Gap grapples with waning consumer spending on discretionary items in the face of inflationary pressures. It has also dealt with elevated inventory levels and has slashed headcount to corral costs.
According to some analysts quoted by Reuters, Dickson's hiring is seen as a "step in the right direction." Shares in Gap rose on Wednesday.