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Disney theme parks' head to lead Gap
©Associated Press SAN FRANCISCO -- Slumping retailer Gap Inc. is turning to an executive who ran Disneyland to make its turnaround dreams come true. Paul Pressler, who had been the head of Walt Disney Co.'s theme park and resort business since 1994, took over as Gap's chief executive officer Thursday in a move that analysts viewed as a coup for the San Francisco-based company. As he leaves behind the land of Mickey Mouse, Pressler will join a business that has been dominated for the past two decades by another Mickey -- the Gap's renowned CEO Millard "Mickey" Drexler. Following through on plans that he disclosed in May, Drexler retired Thursday, ending a storied career in which he transformed Gap into one of the world's best-known retailers. The last two years of Drexler's reign were marred by poor fashion decisions that triggered 28 consecutive months of declining sales -- something the Gap is counting on Pressler to change. "We are incredibly pleased with the outcome of our search and are greatly looking forward to having Paul lead the company," Gap chairman Donald Fisher said. Pressler, 46, brings impressive credentials to the job. During his 15-year career at Walt Disney of Burbank, Calif., Pressler established himself as a sharp-minded marketing wizard with the dexterity to manage complex global operations. Pressler oversaw Disney's theme parks in Europe and Japan, and Disneyland and Walt Disney World in the United States. Gap consists of three separate chains -- the Gap, Banana Republic and Old Navy -- with 4,200 stores and 165,000 employees in North America, the United Kingdom, France, Japan and Germany. Investors reacted positively to the hiring. Gap's shares gained 46 cents to close at $12.45 Thursday on the New York Stock Exchange. The most glaring drawback on Pressler's resume is a lack of fashion industry experience, said Harry Bernard, a fashion consultant in San Francisco. Gap set out to hire an industry outsider -- a tactic that has paid off at other prominent companies, such as IBM Corp. and Liz Claiborne, that have bounced back during the past decade. Pressler has some retailing experience. Before taking over Disney's theme parks, he served three years in charge of the company's retail stores. During Pressler's tenure, the Disney store chain doubled in size. In an interview Thursday, Pressler described the Gap job as "a great opportunity to learn more and test my skills." He compared the challenges at the Gap to problems that Disney chief executive Michael Eisner faced in 1984 when he took over a company that had seemingly lost its magic touch. Eisner subsequently revitalized the Disney brand and built it into a media powerhouse. "If I'm half as successful as he was, I'll be happy," said Pressler, who had been viewed as a possible successor to Eisner at Disney. Pressler made his mark running Disney's theme parks and resorts -- a division that generates annual revenue of more than $6-billion. During his last year at Disney, Pressler dealt with daunting problems brought on largely by a dramatic dropoff in tourism following the Sept. 11 terrorism attacks. To lure Pressler away from Disney, Gap gave him a five-year contract that will pay him at least $2.39-million his first year. Pressler also received 5-million options to buy Gap stock at prices ranging between $6 and $21 per share, according to the SEC filing.
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From the Times Business report
From the AP
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