More Changes at The Gap - Is there Light at the end of the Tunnel?

The Gap GPS (NYSE), the struggling clothing retailer, is expected to announce quarterly earnings today after the close of the markets.  One potentially positive note is the new vigor and style Gap's newest designer, Patrick Robinson, has infused into the Gap's fall collection.  According to a story by Eric Wilson in the International Herald Tribune,

Robinson, 41, is the third designer to attempt to pull the sword from the stone since Gap began to publicly acknowledge its creative personnel in 2003, and the most closely watched because of his popularity with industry insiders and his finesse with casual American sportswear.

 

His fall designs have generated promising reviews, but also concern about whether a single designer - one with a mixed track record - can revive a brand with 1,155 stores in the United States in the midst of an economic crisis.

Robinson's input into design for the Gap was followed today by the company's announcement that acting President Tom Wyatt of the Gap's subsidiary Old Navy who had temporarily replaced Dawn Robertson as president back in February was formally made the President of Old Navy today.  According to the company's press release,

"In the last six months, Tom (Wyatt) unified the organization and brought renewed focus to our customer target, while making the tough changes necessary to get the brand back on track," Gap Chief Executive Glenn Murphy said.

Glenn Murphy, the Gap's CEO, has been working feverishly to find a formula that could work to turn the retailer's fortunes around.  It's tough right now, but maybe, just maybe, he has a real winner with the Gap's newest designer.  Old Navy on the other hand, is a far more difficult situation.  

Stay tuned expect more to come both good and bad.

Gap CEO Continues to Consolidate His Control

Glenn Murphy the recently appointed CEO of clothing retailer, The Gap continues to make his own stamp on the firm. Earlier today, it was announced the president of its Old Navy brand, Dawn Robertson, who had only been with the firm since 2006 would be leaving immediately. The company also announced that Tom Wyatt, president of Gap Inc.’s Outlet division, would become acting president of Old Navy while a search is conducted for a permanent replacement.

Old Navy whose brand had become stale had already begun to make great strides at changing its image with the public. Under Dawn's leadership Old Navy recently began a new logo and was about to launch a whole new line. According to a piece by Amy Merrick in the Wall Street Journal ,

Gap described the immediate departure of Ms. Robertson, 52 years old, as a mutual decision between her and the retailer.

"It became clear to Glenn and Dawn that a leadership change was necessary at the brand," said Stacy MacLean, a company spokeswoman. She said Ms. Robertson and Gap executives were unavailable to comment.

A longtime department-store executive who had been managing director of the Australian chain Myer, Ms. Robertson had been described by some as being an uneasy fit at Gap's San Francisco headquarters. She arrived at Gap less than 16 months ago, hired by Mr. Murphy's predecessor, Paul Pressler. Mr. Pressler himself left the company three months later, in January 2007.

Investors need to keep a very close eye on what Old Navy does next and more importantly, what Murphy plans for gap in its entirety.

For more:

Gap Press Release
Reuters

Wet Seal CFO Moves to Old Navy - What's Up?

Glenn Curtis of Investopedia wrote a piece on the recent move by John Luttrell, the CFO of Wet Seal to CFO for down and out Old Navy owned by the Gap GPS (NYSE) . I specifically highlight the piece because Curtis gives a simple but right on the money analysis of the possible reasons behind Luttrell's decision to change ships. Take a look.