The Barbie movie has been one of the most successful movies of 2023, breaking box office opening records.
One of the key Mattel Inc MAT figures who spearheaded the movie and has helped revive the iconic brand is set to take on a new challenge.
What Happened: Mattel President and Chief Operating Officer Richard Dickson is heading to clothing retailer Gap Inc GPS to serve as the company’s next CEO.
Dickson has been credited with helping revive Barbie during his many years at Mattel. A Wall Street Journal report points to Dickson focusing on cutting down the number of licenses for Barbie and eliminating custom orders by retailers that required additional inventory when he joined Mattel in 2000.
After leaving the company and coming back in 2014, Dickson was the driving force for reviving Barbie and its declining sales. This included adding more body styles and more diverse ethnicities to the Barbie collection.
Dickson implemented the Mattel Playbook during his recent stint at the toy company, which helped grow the power brands of Mattel including Barbie.
The Mattel executive will step down from the toy company on Aug. 3, giving time to continue the celebration of the success of the Barbie movie. Dickson begins his new CEO role at Gap on Aug. 22.
“Gap Inc. is a portfolio of iconic brands, known for having defined American style with bold thinking and making quality fashion accessible to millions. 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 said.
Related Link: Mattel's Q2 Earnings Out Today, Will Barbie Magic Save The Day
Dickson on Leadership, Brands: Dickson was among the public company executives that were featured speakers at VeeCon 2023.
Dickson spoke on a panel called “Engaging Gen Z” and shared insight into connecting with younger consumers.
“Engaging in this new generation is the game Mattel is playing,” Dickson said.
Dickson said that no one achieves greatness in consumer brands without also experiencing failure.
The Mattel executive noted that the company's foundation was laid on the 30-second commercial. He attributed this approach to their success in creating short-form content that resonates with the younger generation.
“Really understanding your consumer inside and out” was one of the important lessons from Dickson. Dickson also said it was important to have “cultural relevance.”
“It’s about execution.”
Turning Around Gap: After a year-long search for a new CEO, clothing giant Gap has chosen a man with a proven track record in revitalizing the Barbie brand, who possesses significant experience in the clothing industry, and has been directly involved in the company's attempted turnaround.
Outside his years of experience at Mattel, Dickson also comes to Gap with apparel experience, including stints at Bloomingdale’s and The Jones Group. Dickson also co-founded high-end cosmetics online retailer Gloss.com, which was later acquired by Estee Lauder.
Gap owns its namesake brand, Old Navy, Banana Republic and Athleta. The company has gone through several leaders and retail strategies that have sent investors elsewhere.
“Richard knows how to bring brands to life,” Gap Chairman Bob Martin said.
Martin has been the interim CEO of the company during the search for a new leader. Martin said Gap has made progress in streamlining its management structure.
“We were able to clear a path for him, but he still has to deliver on what it takes to run a portfolio of brands.”
Dickson has served on the Board of Directors for Gap since November 2022, perhaps foreshadowing a potential move to the company. Gap and Mattel also partnered in 2022 on merchandise, including some centered on Barbie and Ken.
Gap has over 2,600 stores worldwide. With annual sales reaching $15 billion, the clothing retailer's revenue is approximately triple that of Mattel's yearly earnings.
GPS, MAT Price Action: Gap shares have struggled in recent years with a 12% decline year-to-date in 2023, a 67% drop in the last five years and a 79% drop over the last ten years.
The hiring of Dickson has brought some optimism, with Gap shares up 7.71% to $9.92 on Wednesday.
Mattel shares are up 18% year-to-date in 2023 and have gained 36% over the last five years.
Read Next: Analyst Ratings For Mattel
Photo: Shutterstock and UN Women on Flickr
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