(Reuters) -Gap appointed Mattel Chief Operating Officer Richard Dickson as CEO on Wednesday, tapping an executive credited with turning around the Barbie brand and ending a year-long search at the apparel retailer.
Last July, former CEO Sonia Syngal stepped down as Old Navy owner wrestled with weak demand for its casual attire and a slump in its stock price.
The company also struggled with spiraling costs, as well as supply chain snags that hurt its margins.
Dickson, who joined Mattel over two decades ago, made the Barbie brand more diverse and in his current role also oversees franchise management.
"His experience as a proven transformational brand builder and belief in the power of inclusivity, make him a perfect fit for Gap," interim CEO Bobby Martin said in a statement.
He will take charge later next month, Gap said.
Gap's shares climbed about 6% in premarket trade, while Mattel's stock fell 1.5%.
Dickson has also spent more than a decade in various roles at Macy's-owned Bloomingdale's, before co-founding Gloss.com, the first online retailer dedicated to high-end cosmetics.
Gloss.com was later acquired by Estee Lauder in 2000.
(Reporting by Granth Vanaik in Bengaluru; Editing by Krishna Chandra Eluri, Vinay Dwivedi and Sriraj kalluvila)
