Ex-Disney Executive Moving to Gap
Cynthia Harriss, who worked under Paul Pressler as head of the Disneyland Resort, is following her old boss to Gap Inc. to take charge of the retailer’s outlet division.
Harriss is the latest in a string of former Walt Disney Co. employees to join the nation’s largest specialty apparel company since Gap hired Pressler as chief executive in September 2002 to keep its turnaround on track.
Of the dozen executives now on Gap’s top management team, half are former Disney executives.
Some analysts grumbled that Gap now has more than enough former Disney workers prowling the halls of its San Francisco headquarters.
“I think it’s good to get fresh blood in and shake things up a bit,” said Robert Wilson, an analyst with Tiburon Research Group. “But I’m starting to worry that he’s going overboard.”
Pressler declined to comment directly, other than to praise Harriss’ “extensive strategy and merchandising experience.”
“Cynthia is known for her tremendous ability to motivate people and get the best out of her teams,” he said in a statement.
The appointment of Harriss -- who resigned in October from the Disney division that runs Disneyland and California Adventure -- appears to round out Pressler’s executive team as he pushes forward with stabilizing the parent company of 4,200 Gap, Old Navy and Banana Republic stores.
Harriss will head Gap’s outlet division, a relatively small part of the retailer’s operation that includes more than 200 stores that sell discounted apparel from the company’s three marquee divisions, as well as private label clothes made specifically for the outlet chain.
“I think from an operational perspective, she’s probably as suited as anybody else,” said Adrienne Tennant, an analyst with Wedbush Morgan Securities.
Gap has been making strides in its turnaround effort, logging positive same-store sales since October 2002 after a negative streak that lasted 29 months. Same-store sales are considered an important barometer of a retailer’s health because they include only stores open at least a year.
But the apparel company’s December results disappointed Wall Street.
The stock closed Wednesday at $19.74, down 26 cents, on the New York Stock Exchange. The announcement was made after the market closed. The stock has lost 40% in the last year.
Tennant said she would maintain her “hold” rating on Gap’s stock until Pressler and his team became more specific about how the changes they had made in the business were progressing.
A new head for the outlet division is not likely to have much effect on the turnaround.
“It’s 200 outlet stores out of 4,200 stores,” Wilson said.
But the division could prove a starting point for Pressler’s chum to begin climbing her way up Gap’s ladder, he said.
“I could see that as a plausible scenario,” Wilson said.
Harriss, 51, said in an interview Wednesday that she was eager to assume her new post Feb. 9 and to work again with Pressler.
“I consider him to be my mentor and an individual who has certainly influenced and inspired and shaped my career to date,” said Harriss, a Laguna Beach resident who will relocate to San Francisco.
“Mutually, we’ve had some terrific conversations about the opportunities that present themselves at the Gap that might be appropriate for my talents,” she said, “so I’m just thrilled Paul thought of me.” She replaces Neal Goldberg, who resigned in November.
As head of the Disneyland Resort, she oversaw growth and management of Disneyland and the California Adventure theme park and of the resort’s hotels, stores and restaurants in Anaheim.
Before that, she was senior vice president of stores for the Disney Store division.
Earlier in her career, Harriss worked 19 years at Midwest retailer Paul Harris Stores in various operational and merchandise management positions.
