Gap Inc. (GPS, Financial) announced on Wednesday it has appointed Neil Fiske as the new president and CEO of its Gap brand.
The San Francisco-based retailer, which also owns the Old Navy, Athleta and Banana Republic brands, said Fiske will begin his new role on June 20.
The appointment could not come at a better time as, much like the rest of the retail sector, Gap has had to reposition itself in order to compete with Amazon (AMZN, Financial).
In May, the company posted first-quarter adjusted earnings per share of 42 cents on $3.8 billion in revenue. While both metrics improved from last year, only revenue surpassed Thomson Reuters’ expectations of $3.6 billion.
Additionally, while the company has witnessed strong growth from Old Navy, the performance of its Gap stores has lagged in recent years. In the first quarter, the Gap brand saw its global same-store sales fall 4%, while Old Navy posted a 3% increase. Overall same-store sales rose 1%, marking the company’s sixth consecutive quarter of comparable sales growth. This still fell below Thomson Reuters’ estimates of 1.7% growth, however.
Fiske, who was previously the CEO of Australian clothing brand Billabong International Ltd. before it was acquired by Boardriders Inc. in April, has a history of turning around struggling specialty retail brands. Gap noted that during his time at Billabong, Fiske restored the brand “to a position of market leadership and multiyear share growth.”
Prior to that, Fiske also spearheaded the transformations of outdoor outfitter Eddie Bauer and L Brands’ (LB, Financial) Bath and Body Works.
In a statement, Art Peck, president and CEO of Gap, expressed his confidence in Fiske’s abilities to turn the business around.
“He is an experienced leader who deeply understands the mechanics of this business, the value of an omnichannel strategy and the need to build a progressive and relevant brand,” he said. “I believe Neil is the right leader to strengthen Gap brand.”
Fiske also voiced excitement for his new challenge.
“Gap is a truly iconic brand that is loved by its customers across the globe, and I am excited about the significant opportunity ahead for us,” he said. “The brand has made some important progress and I look forward to working with the team to drive improved performance, operational excellence, great merchandising and distinctive and powerful marketing.”
The stock, which closed at $32.23 on Wednesday, was down 1.46% on Thursday morning at $31.74. According to GuruFocus, the stock has fallen approximately 5% year to date.
Disclosure: No positions.
