Pressler Update

[cellarhound]

Pressler's in the hot seat again
Marketwatch 5/16/06

Pressler's in the hot seat again
A handful of analysts are betting promises by Gap Inc.Chief Executive Paul Pressler this week that his three top divisions -- the Gap, Banana Republic and Old Navy -- will return to their glory days as must-go destinations for casual, comfortable fashions in the second half of this year are more of the same: empty.

Should he fail to deliver gains in same-store sales and significant operating improvements out of his more than 3,000 retail stores, the analysts think that he should be fired.

"I have to believe that [the board] is laying down the gauntlet for the second half," C.L. King & Associates analyst Mark Montagna said Friday. "If the divisions don't perform in the second half, there will be so much pressure to get rid of him."

In the nearly five years under Pressler's watch, he has done a stunning job of turning around the balance sheet of the company by wiping out huge chunks of debt and building a strong flow of cash.

But the same can't be said for the retail stores, which have seen same-store sales (an important industry measure of receipts rung up at stores open longer than a year) decline or fall flat in 14 of the last 15 months.

Personally I think he should be fired for that ugly 70's retro ad campain he put up in Embarcadero Center... Oh yeah, polister is something I want to wear again...

[tloolgb]

Yep. The man can implement someone else's plans and cut budgets damn well.

But again, look how out of touch he is with what he is running.

[Athlonacon]

How did this guy ever get to be in these positions anyway? It seems he bombs out of every company he goes to.

I realize he worked wonders on the Disney Stores in the early years, but something tells me now he probably got a lot of help from someone in the background.

"...many don't believe that the Gap can ever regain its crown...", "They'll probably never get there again, ever". Sounds familiar, although Disneyland is a MUCH more important American institution than The Gap. Matt Ouimet has done excellent damage control, but some things at Disneyland will never regain their luster.

The beauty of this country is that he's probably STILL being paid millions of dollars to run his company into the ground. Corporate accountability, what an oxymoron. Just get an indifferent board with board members who just don't care and you can run a company into the ground and get paid extremely well while doing it.

[Speedway]

Matt Ouimet has done excellent damage control, but some things at Disneyland will never regain their luster.

Like what?

I'm not contesting your statement, just intrigued.

[merlinjones]

It would be fun to see PP properly humiliated in front of his corporate peers, but I would fear him landing back at Disney again.

So long as he remains In the Gap, the Magic Kingdom sleeps more soundly.

[Dustysage]

I wonder what company he'll budget cut into mediocrity next?