2023-07-26 14:42:33 ET
The Gap ( NYSE: GPS ) jumped 7% on Wednesday after Mattel ( MAT ) president Richard Dickson was named as the toy retailer's new chief executive officer.
Dickson has been credited with the revival of Barbie, a brand which itself is seeing a huge resurgence in interest amid the release of the "Barbie" movie directed by Greta Gerwig and starring Margot Robbie and Ryan Gosling.
"We view this announcement favorably and believe Mr. Dickson's prior experience in reinvigorating multiple brands could prove valuable when creating/implementing his playbook to drive improvements across the business," Jefferies wrote in a note.
"The hiring of a seasoned C-suite executive such as Mr. Dickson is a step in the right direction," Jefferies said.
"His board role with GPS (appointed in November 2022) alongside his prior experience with reinvigorating brands (mentioned above) could provide him with a head start in both formulating and implementing his playbook to drive improvements across the business."
Search for the terms "Barbie clothes" is at a peak on Google.
Jefferies has a Hold rating on GPS, one of 14. Two Wall Street analysts call GPS a Strong Buy, two a Buy, two a Sell and one a Strong sell.
Barbie the movie took in $155M at the U.S. box office over the weekend to mark the biggest domestic opening of the year. The film about Mattel's ( MAT ) iconic toy doll took in another $182M from 70 global markets for a total weekend haul of $337M.
Earlier this year, the Gap x Barbie collection of tees, skirts, logo hoodies, denim, button-downs and accessories was released. The collection even includes pet apparel. The items, which will feature Barbie branding and Gap’s signature arch typeface, are available online and in select Gap stores globally.
GPS is down 13% in 2023 so far.
More on GPS:
- Gap rises on CEO appointment
- Gap rallies after Barbie dazzles at the box office
- Gap names Chris Blakeslee to head Athleta business
For further details see:
Gap looks for Barbie magic with new CEO hire