Gap Inc. said: On Monday it named fashion designer Zac Posen as the clothing retailer's new creative director and chief creative officer of Old Navy, part of the chain's search for greater relevance amid uneven demand for clothing.
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“Posen’s technical expertise and cultural clarity have continually evolved American fashion, making him a perfect fit for the company as we ignite a new culture of creativity across the portfolio and reinvigorate our iconic brands,” CEO Richard Dixon said in a statement.
The company — which operates the namesake Gap Stores, Old Navy, Banana Republic, and women's activewear chain Athleta — also cited Posen's “artistic excellence and body-positive designs.”
Posen, a 43-year-old New York native, first launched his own fashion brand in 2001 and became a sought-after stylist for red carpet events for celebrities such as Rihanna, Natalie Portman and Oprah Winfrey. In the years before the brand closed in 2019, Posen was also a “Project Runway” judge, and helped design clothing for Brooks Brothers and Delta Air Lines Inc. DAL,
In his new roles, Posen will report to Old Navy CEO Hugh Barbeto, Gap said. As creative director for GAP as a whole, Posen will serve as Dixon's “cultural liaison and creative partner.”
“I am excited to join Gap Inc. now as we begin a brand revitalization process across the portfolio, which is rooted in great products, experiences and a new culture of creativity,” Posen said in a statement.
GAP shares rose 0.4% after business hours, after closing 0.8% higher during regular trading hours.
The move to bring on board Posen is the latest effort by Gap to recalibrate its executive team in recent months. Last month, the company appointed Eric Chan, former chief financial officer of the Los Angeles Clippers, which plays in the NBA, as chief business and strategy officer, Mattel Inc.
Veteran Amy Thompson as Chief People Officer. Dixon, former chief operating officer of Mattel, became CEO in August.
Inflation over the past two years has reduced demand for clothing, forcing many retailers to lower prices to attract customers. While Gap's quarterly results in November — including same-store sales gains from Old Navy — sent the stock higher, Dixon, during the retailer's earnings call at the time, said there was room for improvement in the company's retail chains.
In particular, he said the hiatus has been “very quiet in the cultural conversation.” Old Navy needs stronger marketing and a wider variety of products to attract families, he said, and needs to do a better job of “balancing basics with exciting new trends and a pricing strategy that clearly communicates amazing value.”
“We need to strengthen our portfolio of brands with clear identities and purpose,” Dixon said on the call. “We need to create on-trend product diversifications with a clear view to offer beyond just needs to meet needs as well.”
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Discuss plans to introduce newer, more comfortable jeans. Nike NK E,
He also stressed the importance of product “newness” for growth. Both companies are also cutting costs in the wake of weak demand.
Gap shares are up 37.2% over the past 12 months.
