Gap Taps Disney Parks Chief as CEO

[imported_JohnY]

Gap Taps Disney Parks Chief as CEO
Thu Sep 26, 9:26 AM ET

CHICAGO (Reuters) - Gap Inc. , the largest U.S. specialty apparel retailer, on Thursday said it named Paul Pressler, head of Walt Disney Co.'s theme parks and resorts unit, to succeed Millard "Mickey" Drexler as its chief executive.

Gap said Pressler will become president and CEO effective immediately, putting him in charge just in time for the all-important holiday sales period. The company had said Drexler would retire as soon as a successor was found.

The San Francisco-based company -- which operates over 4,200 Gap, Banana Republic, and Old Navy stores -- has been seeking a successor for Drexler since May.

Pressler, 46, is a 15-year veteran of Disney. His retail experience includes three years at the helm of Disney Stores.

During his tenure, Disney Stores grew to 335 from 160 in eight countries. He comes to Gap in a period of slowing growth rather than rapid expansion.

Some analysts have criticized the retailer for continuing to open new stores as same-store sales lag.

"He did run Disney stores, so there is considerable familiarity with the problems and opportunities that exist in the area of retailing," said Kurt Barnard, president of Barnard's Retail Consulting Group.

"What he has to try to do is bring more customers into Gap and get them to buy more merchandise that is not marked down, as has been the case for a long time."

Gap, once hailed as a beacon of retailing success, has foundered for more than two years after an ill-fated foray into trendy clothes that alienated traditional Gap customers. Earlier this month, it reported its 29th straight month of declines in sales at stores open at least one year.

Drexler, 57, is considered by many to be the brains behind Gap's meteoric growth and its influence over American casual style in the 1990s, but he was at the helm when Gap made an ill-fated foray into trendy clothes that alienated the traditional Gap customer more than two years ago.

The stock closed on Wednesday at $11.99 on the New York Stock Exchange ( news - web sites), at the low end of its 52-week range of $17.14 to $9.25.

[imported_JohnY]

The official press release:

Gap Inc. Announces New CEO

Disney Executive Paul Pressler Named President and CEO of Gap Inc.

SAN FRANCISCO -- September 26, 2002 -- Gap Inc. (NYSE:GPS) today announced that Paul Pressler, a 15-year veteran of The Walt Disney Company and Chairman of its global theme park and resorts division, has been named President and Chief Executive Officer of Gap Inc., effective immediately.

Mr. Pressler, 46, succeeds outgoing CEO Millard S. Drexler, who announced in May his plans to retire as soon as his replacement was hired.

Commenting on the announcement, Gap Inc. Chairman and Founder Donald Fisher said: "We conducted a comprehensive search for new leadership and were compelled by Paul's track record and depth of experience in marketing one of the world's most beloved brands.

"Paul knows how to lead creative, customer-focused organizations and manage and grow complex businesses both in the United States and internationally," Mr. Fisher said. "We are incredibly pleased with the outcome of our search and are greatly looking forward to having Paul lead the company."

Mr. Fisher said he intends to recommend to Gap Inc.'s Board of Directors that Mr. Pressler be appointed a director.

As chairman of Disney's world-renowned theme parks and resorts, Mr. Pressler was responsible for the growth, brand development and operations of Disney's six US-based theme parks in California and Florida, and four international sites in Paris and Tokyo, as well as for the development of Disney's eleventh theme park in Hong Kong. With revenues of over $6 billion, the division also includes more than 22 hotels, two cruise ships and Walt Disney Imagineering, the division that creates, designs and builds these assets.

Previously, Mr. Pressler served as president of the Disneyland Resort in Anaheim, Calif., where he led the complex expansion of Disney's original theme park and a massive urban renewal of the Anaheim area. Mr. Pressler came to Disneyland from The Disney Stores, where he was president for three years. During his tenure, The Disney Stores grew from 160 to 335 in eight countries around the world.

Of his appointment, Mr. Pressler commented, "I am honored to have the opportunity to lead the many talented people at Gap Inc. Together, we will continue the great legacy of the Gap, Old Navy and Banana Republic brands, while creating a new and exciting vision of the future."

Mr. Pressler started at Disney in 1987 as Senior Vice President, Product Licensing, and was promoted to Senior Vice President, Consumer Products, in 1990. Prior to joining Disney, he held various branding and marketing positions at Remco Toys, Mego Toys and Kenner-Parker.

The search was conducted by Herbert Mines Associates and Heidrick & Struggles.

[imported_JohnY]

I love the "positive spin" that they put on this. Of course, no note that the quality of the Disney park experience has declined under pressler like no other head of theme parks.

Disgusting.

All we can hope for is that they put a "Walt man" in his place (or woman for that matter... the term referring to the old school Walt Man or Roy Man in the studios). Maybe Cynthia from Disneyland would be a logical choice.

[twistedmickey]

There is a God!!!! graemlins/muscles.gif graemlins/thumbsup.gif :D

[vsiv1695]

Best news in months. May I never hear his name again!

[kansasteen13]

I think Cynthia Harris would be great as a replacement. she is doing quite well on the DLR.

[Ian]

Gotta agree with you, John. I mean Pressler made his name with the Disney Stores and his legacy has been their virtual extinction.

Then he takes over the theme parks and the result is a big ditto.

I think someone at The Gap has been sniffing the blue jeans dye ... :confused:

[brownie]

Here's an opportunity for Disney, hope they don't blow it. I hope they replace Pressler with a Walt "person," someone more interested in creating great guests experiences and less interested in trimming as much cost as he or she can.

[Roland]

Someone, please pinch me!!!! I must be dreaming!!

graemlins/muscles.gif graemlins/muscles.gif graemlins/muscles.gif

One down, one to go graemlins/thumbsup.gif

And of course, Paul's sudden availability has nothing to do with the recent Disney Board meeting putting pressure on Eisner. And in turn, Paul seeing life was not going to be too pleasant under the newly revived, refocused, rejuvenated and re-invigorated Eisner. Mmmmmmmmm

[ September 26, 2002, 12:48 PM: Message edited by: Roland ]

[TheRustyScupper]

FINALLY, A BIT OF GOOD NEWS FROM THE MOUSE !!!

1) I never really liked the GAP.

2) I have complete faith that Pressler will do to the GAP what he did to Disney -
... blindly cut costs,
... lay off staff and employees,
... close stores,
... reduce operating hours,
... lower customer service levels,
... paint during customer hours
... reduce janitorial and clean-up services,
... care little about quailty.

3) What a splendid opportunity to reverse the trend at WDW !!!

4) I guess he decided to move jobs after Dorothy dropped a house on his sister in Munchinland.

[ September 26, 2002, 02:07 PM: Message edited by: TheRustyScupper ]

[mjstaceyuofm]

On a replacement for Pressler....

Cynthia Harris may be the logical choice, but I'm not so sure she's the best choice. I'd hardly classify her as a "Walt" guy. Rumor has it she never even set foot in DL before she took a job with Disney... DCA's performance has been horrible and there's no relief in sight. I'm just not sold on her. I still think she's an Ei$ner croney (aka "yes"-woman).

Let's think outside the box - Al Weiss, current president of WDW or even Judson Green - former president of Walt Disney Attractions (currently doing some tech-thing outside of Disney).

[Aurora]

Good news for Disney.

Bad news for the Gap. Although it the only way it can go downhill more is if Baby Gap follows the lead of Gap Kids, which shrunk trashy adult clothes and made them pint-size. :mad:

[ROEJunkie]

Well, I hope GAP customers can get used to clothing that lacks unnecessary but desirable features like zippers and buttons.

-Eric

[Ian]

Please don't even MENTION Al Weiss's name as a possible replacement!! He and Pressler are birds of a feather ... which is why he got where he was in the first place.

I know this will never happen and it might not even be a great idea, but I'd love to see them give the job to Roy Disney. Even if it's only short-term, it sure would be great to have a Disney back in charge of the parks again.

[Figment!]

Ding Dong the wicked witch is dead

Did I type that outloud?, Oh well,

It is possible that we still may not get someone in place that isn't perfect but Pre$$ler was pretty darn graemlins/thedolls.gif and it would be very hard to do worse, if I was a betting man, I would bet on an improvement.

I wonder if Roy Jr. would like to take on a little more work, couldn't hurt to have a DIsney behnd the helm of the parks again, part of Walt's DNA is in there somewhere graemlins/mickey.gif

[mjstaceyuofm]

Al Weiss may be another Ei$ner "yes" man, but I'm not so sure he's of the same mold as PP. The unfortunate circumstance is that he may have been dealing with edicts handed down by PP and Ei$ner. In other words, I'm not so sure he's the cause of all the bad things at WDW. I actually think he may be closer to "getting it" than Cynthia Harris.

On other fronts...

Yes, we're all happy to be getting rid of Pressler, but before we swear off the GAP and laugh at them for making the most terrible mistake of their existence, let's not forget he's going somewhere with an entirely different product than Disney. He's a goods and retail guy and at least has a decent track record in that sector. The Disney Store grew and became a good venture because of the work that he did. He left before they oversaturated the market and turned them into a princess outlet. I actually think this is a win-win scenario. Disney gets rid of someone clearly of the wrong mold for the job and the GAP gets someone with a knack for retail. I think he CAN and will do well at the GAP. Part of his problem was he treated the parks like a retail business and they're not. The parks success is directly attributed to the feel and experience they create. It's customer service, not goods, and Pressler just couldn't acknowledge that fact.

[asthmaboy]

Couldn't be more dead-on mjstaceyuofm. Exactly my thoughts.

[Brian]

This is great news! Just as good, if not better, than the monorail expansion rumor that was posted here a few months ago.

Although the press releases on abcnews.com (of all places) make it sound negative, I think this may be the best thing that has happened to Disney's theme parks in the past couple of years.

Think about it... What's really happened under Paul Pressler's management?

graemlins/ack.gif Reduced park hours and higher ticket prices.
graemlins/ack.gif The Magic Carpets of Aladdin and Chester & Hester's Dino-Rama
graemlins/ack.gif California Adventure
graemlins/ack.gif Caroussel of Progress and Timekeeper's Random Operating Schedules
graemlins/ack.gif Sloppy Park and Resort Maintenance, which I'm guessing is a result of his cost-cutting
graemlins/ack.gif The elimination of Early Entry for the past few months
graemlins/ack.gif Character Caravan
graemlins/ack.gif Park schedules that change at the last minute

Just a hunch here, but I don't think he listed all of that stuff on his resume.

The ride may be gone, but there truly is a great big beautiful tomorrow!

[AndrewJackson]

Originally posted by WDWacky:

I know this will never happen and it might not even be a great idea, but I'd love to see them give the job to Roy Disney. Even if it's only short-term, it sure would be great to have a Disney back in charge of the parks again.I love this idea. These parks were Walt's dream, and Roy put off retirement to make sure WDW happened, and even changed the name. I think it would be great to get a Disney in charge of the theme parks. It certainly could not be worse.

[UltimateDisneyFreak]

Without being too harsh, I'm just glad to see him go. And get out of the Company, on top of that! graemlins/thumbsup.gif
He came, did what he did, and moved on. Just have to say, good luck to the Gap! You'll need it! graemlins/laughing.gif

Also...

Originally posted by Roland:
One down, one to go graemlins/thumbsup.gif I said the exact same thing after I read the news article! graemlins/laughing.gif

Now, who will fill his shoes??? One of life's mysteries!

[longlivethepumpkins]

WOOHOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Wow, that makes me happy!

graemlins/party.gif graemlins/beer.gif graemlins/crazy.gif

I like the Roy Disney idea as well. Roy admits he's not the most creative person in the universe, but he believes in the ideals of Walt Disney and his father, which at this point is far more important. From looking at DisneySea, it's obvious that the Imagineers still have the touch - they just need someone who knows how to let them work their magic.

The times, they are a'changin'... :D

[master_gracey]

Well I'm just gald he's gone. When he was at Disney Stores it tanked, and since 98 the parks have not done well. So good riddance to bad rubbish.

[kansasteen13]

I think Roy Disney would be great,but Cynthia didnt decide on DCA Eisner did and Al Weiss is even worse look at what he is doing to WDW along with Pressler,I mean if it was Roy or Cynthia it would be good because Pressler just ignored Disneyland completely and I dont think anyone else would ignore it that much.

[OldDisneyFan]

Originally posted by JohnY:
Gap Taps Disney Parks Chief as CEO
Thu Sep 26, 9:26 AM ETStatement by Michael Eisner On Paul Pressler's Departure as Chairman of Disney:
Statement by Michael Eisner (http://www.reuters.com/co_news_presentation.jhtml?type=companynews&provider=companynews&StoryID=1501849&symbol1=DIS.N&symbol2=DIS.N)

[mjstaceyuofm]

OH - I'm all for Roy Disney taking over the theme parks. I have no problems there. Realistically, do I think it will happen? No Way!

Unfortunately your choices are Harris, Weiss, or that guy who runs Euro-Disney - Rasulo. You're right, Cynthia Harris had nothing to do with the making of DCA, but she's been the DLR president for quite some time and the attendance #'s just keep plummeting for DCA. The "quick fixes" implemented under her tenure have done nothing but bomb and look at the fiasco's they've had at DL this past summer with Splash Mountain, Tom Sawyer Island, the carousel.... The list goes on and on. It's no worse or better than the garbage that we've put up with at WDW under Ei$ner/Pressler/Weiss.

When you get right down to it there's going to be no change in the philosophy of how the parks are handled until a few things happen - first and foremost Ei$ner's gotta get the axe. All he does is hire "yes" men and then cast them aside when he's called to the table (a la Pressler, the past 2 heads of ABC, the past 3 heads of the studio operations). It's a tactic Ei$ner uses to keep the gullable Board of Directors he has in place, in check. I could go on and on.

I'm just as happy to see Pressler go, but until we see a replacement for him, the five-year plan Ei$ner presented to the Board this past Tuesday, and an Ei$ner successor named - I'll remain a bit pessimistic. The really scary part is there's whispers all over the place that this five year plan is nothing more than a few bones and a whole lot of COST-CUTTING. Scary!

[mickclub1955]

Believe it or not Merrill Lynch sees this as a bad thing. Boy do they need a reality check. I guess they need to be educated. I wish Dick Nunis could come back. If someone could coax him out of retirment.

[bemster]

I'll do it! Pick me! Pick me! :D

[Ian]

The thing is ... What they really need is someone in charge who can just set the vision. Let the Imagineers and everyone else do what they do ... as someone else said they've proven they can still cut the mustard in Tokyo, as long as they have the funding.

The other important quality has to be the ability to stand up to Eisner and stop allowing parks to be the funding vehicle for every other lainbrained project in the company.

This means, of course, that there is no way we'll get the right person since Eisner would never put someone in the job who would stand up to him.

[Brian]

What really baffles me is how all these analysts in the news thought Paul was such a great asset to the company. On top of that, you have Eisner's press release saying the same thing. I'm hoping that all of this praise of him isn't a sign that they're gonna hire another clone to replace him.

I never put too much thought into it before, but I think it really is time for Eisner to go. I mean, when Pressler was around, Eisner did nothing to change the direction Pressler took the parks. To me, that's a sign that Eisner approved of everything that he did. I think a true shake-up in the executives will give this company the breath of life it needs to become an innovator and leader once again. Since the mid to late 90s, they've become stale.

[ParkHopper]

Reuters Company News
Exit of Disney parks head seen as possible blow

By Ben Berkowitz

LOS ANGELES, Sept 26 (Reuters) - The sudden departure of one of Walt Disney Co.'s (NYSE:DIS - News) top executives from its most profitable division is regarded as a setback for the media giant as it struggles to revive earnings growth.

In a surprise announcement, Paul Pressler, the former chairman of Walt Disney Parks and Resorts, was named on Thursday chief executive of clothing retailer Gap Inc. (NYSE:GPS - News), effective immediately.

While analysts said the company has a breadth of talent from which to replace him, the departure of the 15-year veteran is likely to raise questions about Disney's ability to retain management. It will also put further pressure on Chief Executive Michael Eisner, already facing shareholder concerns over a declining stock price.

"In our opinion, he is Disney's best- and most-experienced executive and we view his departure as a loss for the company," Merrill Lynch media analyst Jessica Reif Cohen said in a research note.

As Pressler joins Gap, which is in the midst of a long-term plan to right itself, he leaves an operation in similar straits: Disney's sprawling theme parks division. The unit has 10 parks in the United States, France and Japan, and employs about 90,000 "cast members," as Disney calls the employees.

"What it says to me is Disney is a pretty tough place to work these days," said Rich Ingrassia, a media and entertainment analyst at Roth Capital Partners.

Eisner has faced shareholder pressure to map out a succession plan in recent weeks. With 18 years at the helm of Disney, Eisner is the longest-serving corporate chief among the 30 companies that make up the Dow Jones industrial average.

Eisner praised Pressler and his contribution to the company in a statement, calling him a "tremendous asset," without addressing his departure or a successor.

While industry watchers said there would not be much of a direct operational effect on Disney from Pressler's departure, some also said his loss could cloud perceptions of the company's turnaround efforts.

"Pressler is a seasoned executive and we believe he will be missed," UBS Warburg analyst Christopher Dixon said in a research note. "That said, the theme park division has a breadth of management talent and we would expect any one of a variety of park operating heads to step into (his) shoes."

In a letter to his staff, Pressler apologized for the haste with which the announcement was made.

"I have always said that none of us will be recognized individually until we are all recognized collectively," he said. "The happiness that I have experienced and any successes that I have achieved are simply because of this outstanding, dedicated, and loyal team."

But Dixon also said "the departure will resurface questions about Disney's ability to retain management and arouse further speculation as to senior management succession."

PROFIT CENTER

The theme parks unit is Disney's biggest profit driver, accounting for 40 percent of operating earnings last year. But in the fiscal third quarter ending in June, the division's revenue fell 5 percent from a year earlier to $1.8 billion, while operating income fell 17 percent to $467 million.

The company also has said there were signs the current quarter could be weak as well, a prognosis that disheartened analysts and prompted Disney to lower estimates.

Tim Wallace, who follows Disney for Banc of America Securities, said the company's theme parks unit has been hurt more by the slump in travel over the past year rather than management missteps.

"The problem at the theme parks is a macro issue. It is not an operational issue," he said.

Another Disney executive also said he was confident that the parks division would not suffer.

"Paul built up a fantastic organization underneath him. Frankly, it will never miss a beat," Dick Cook, the chairman of Walt Disney Studios, said at an investment conference in San Francisco.

Disney shares closed 47 cents higher, or 3.1 percent, to $15.90 on the New York Stock Exchange as they tracked a rebound in the broader market.

For the year, Disney stock is down close to 25 percent and has bounced from an eight-year low of $13.52 in mid-August.

The stock has been hurt by a number of factors, including theme park performance, difficulties at its ABC television network, which trails rivals NBC and CBS in the ratings, and corporate governance questions.

[DAKChuck]

Hmmmmmm...

I don't know that Pressler was the spawn of evil. I never had an issue with him. I think the major problem with Disney now a days is that they are taking on tooooooooo many ventures. ABC is droping coins into quicksand right now. The parks account for around 40% of the profits. The park division is holding everything else up.

I would like to see Judson Green.

[kansasteen13]

Intercotwest has the news on the new president of theme parks,it's the DLP president which is really bad.also Dick Nunis would of been really cool but Eisner would have probably not been able to handle him being around.also DAKChuck I dont see how you could not have a problem with him he has ignored Disneyland,helped ruin Walt Disney World and then some.now the only good thing is the Cruise,gotta love that cruise.

[Tekneek]

Maybe Gap stores will start closing all over the place.