Can GAP Introduce Adidas Executives To Reverse The Downward Trend Of Performance?

According to the Beijing business daily, GAP, the US fast fashion brand, announced the appointment of AlegraO Hare as senior vice president and chief marketing officer to help brands reverse their declining performance.

It is reported that Alegra O 'Hare has served as vice president of global communication for adidasOriginals.

It is noteworthy that in February 2018, GAP's former president and CEO Jeff Kirwan resigned because she failed to lead the brand to grow and grow. Her position is temporarily represented by GAP executive vice president and global talent and sustainable development director Brent Hyder.

In June 2018, Cape group announced the appointment of NeilFiske as the president and chief executive of its GAP brand.

Some analysts say that the main reason for the frequent replacement of GAP executives is the decline in their performance.

According to the latest financial data released by GAP group, sales increased by 6.5% to 4 billion 89 million US dollars in the third quarter of November 3, 2018, and net profit increased 16% to 266 million US dollars compared with the same period last year, mainly due to the growth of OldNavy and BananaRepublic sales. The comparable sales of the main brands GAP fell 7% compared to the same period last year, while the same store sales in the first quarter and second quarter decreased by 4%.

In the 2017 fiscal year, GAP brand's annual sales volume was $5 billion 318 million, a year-on-year decrease of 2.5%.

It is worth noting that, for the third quarter performance of the GAP brand, ArtPeck, the group's chief executive, once said "dissatisfied" and said it would not rule out bold and necessary steps to ensure that the brand brought value to shareholders.

Today, GAP is once again adjusting the top management position, or a positive signal of its turn in performance.

In addition to the appointment of new executives, the group also considered hundreds of poorly performing stores in the GAP brand.

It is reported that in January 20th this year, the flagship store of GAP Fifth Avenue in New York has been officially closed. The shop has three floors, covering an area of 40 thousand square feet. It has been in operation for 20 years, and the daily rent is up to US $300 thousand.