P Pressler steps down -- Anyone surprised?

[Luv2Roam]

"Gap CEO Paul Pressler steps down

LOS ANGELES (Reuters) - Gap Inc. Chief Executive Paul Pressler, under pressure over the retailer's struggling sales and stock price, resigned effective immediately, the company said on Monday.

Nonexecutive chairman Robert Fisher will fill in on an interim basis.

Pressure on Pressler had been mounting over the past year, and especially in recent weeks, as the iconic retailer of casual American apparel has failed to turn around disappointing sales.

Many on Wall Street have speculated the company could spin off certain divisions, or be taken private.

The company also said it still expects fiscal 2006 earnings to range between 83 cents to 87 cents per share.

Since 2005, Gap has reported declines in sales at stores open at least a year -- a key measure of financial performance -- in every month except for two.

"While this certainly opens up the speculation for a private equity/LBO possibility at Gap, still the company could very well go into a restructuring situation and hire a new CEO," said Arun Daniel, an analyst at ING Investment Management.

Many retail watchers have questioned whether Pressler, who arrived at Gap in September 2002 after 15 years at Walt Disney Co., was the right person to lead the company since he lacked retail experience.

During his tenure, Pressler focused on reducing debt, improving inventory controls, closing underperforming stores and adding technology to back up operations at its more than 3,000 worldwide stores.

Despite internal problems, Gap shares rose 10 percent in 2006, helped by share buybacks. But at the end of 2006, the stock traded 7 percent below January 2005 levels.

Shares of Gap rose about 3 percent in after-hours trading to $20.52 from a close of $19.90 on the New York Stock Exchange."

http://today.reuters.com/news/home.asp

 

[Peter Pirate 2]

Geez I hope disney doesn't hire him back...He is Iger's type of guy...

 

[Luv2Roam]

Don't say that -- even in jest!

 

[Another^Dimension]

Surprised? Nope...

Cuts along with higher prices added to diminished quality don't equal profits.

 

[Bstanley]

Many retail watchers have questioned whether Pressler, who arrived at Gap in September 2002 after 15 years at Walt Disney Co., was the right person to lead the company since he lacked retail experience.

What?!? All he did at Disney was open retail stores - even when he was supposed to be managing Disneyland...

 

[denyd]

[QUOTE
Gap Inc. was already struggling when it brought in Paul Pressler as chief executive more than four years ago. Those troubles look even more daunting as the clothing retailer ushers Pressler out the door with a $14 million severance package that leaves him in a lot better shape than the company he departs.

Gap bounced back during Pressler's first 18 months on the job, and he won high marks for closing poorly performing stores and instilling more financial discipline. Those improvements, coupled with the recent speculation about a takeover bid, helped boost Gap's stock by about 60 percent during Pressler's tenure.

But Pressler never demonstrated a great deal of fashion sense or the ability to hire people who did — a shortcoming that damaged Gap's brand as more shoppers defected to merchants that offered more hip choices or lower prices.

"The back end of the house was something that Paul did a phenomenal job," said Bobbie Lenga, managing director of the retail practice at executive recruiter Russell Reynolds Associates. "But he is not a strong product person. Product is what drives the business."

][/QUOTE]

These are from another article on him leaving. Poor guy kicked to the curb with only 14M in severence, how will he survive. I wonder how long before the old couch-painter is out the door.

 

[raidermatt]

I thought he was better suited for The Gap, but I guess I was wrong.

 

[Cricket2]

Wasn't he the plush king?

 

[stings]

Gee! This sounds strangely familiar. "During his tenure, Pressler focused on reducing debt, improving inventory controls, closing underperforming stores and adding technology to back up operations at its more than 3,000 worldwide stores."

The man is a "bean counter". Nothing more, nothing less. He seems uniquely unsuited to any profession where creativity, even in a marketing sense, is paramount.

Hopefully, he will realize this as well.

 

[LuvDuke]

The crowning glory is this guy will get another plum job because of his "experience".

Yanno what's really funny? I stopped going to the GAP for the same reasons why I've stopped going to WDW: Higher prices and less customer service for the same old-same old.

 

[MinnieGirl33]

He killed the Disney Stores.