The future of Mattel is about a lot more than making toys, CEO says

CNBC 3 days ago

The future of American toymaker Mattel involves a lot more than just selling toys, the company's CEO, Ynon Kreiz, told CNBC's Jim Cramer on Wednesday.

Toys will always be the foundation, but it's also about "commercializing our brands and finding transformative opportunities for us to be a part of other verticals that are directly adjacent to the toy industry," Kreiz, who also is chairman, said in a "Mad Money" interview.

Think film, television, live events, games and music, Kreiz said, which all are a "tremendous opportunity for a company like Mattel that owns such a strong collection of ... global brands that have so much resonance and appeal."

Its well-known brands such as Fisher-Price, Barbie and American Girl aside, Mattel, as a company, has struggled in recent years as consumer tastes shift.

In April 2018, Kreiz became its fourth CEOs in four years. It was hit hard by the bankruptcy of Toys R Us, and it also underwent an investigation into accounting errors.

But in October, Mattel reported better-than-expected earnings and saw its shares jump as much as 20% in extended trading following the news.

Shares of Mattel closed up 4% on Wednesday at $11.62. While the stock remains off its 52-week high of $17.27, which it hit in February, it's still up 16.32% year to date.

From Day One, Kreiz said his long-term vision for Mattel included a more diversified company. He pointed to his background in content creation and intellectual property — not just traditional toys — as motivator for this transformation.

He previously served as CEO of Fox Kids Europe and YouTube content network Maker Studios, which was acquired by Disney in 2014.

Already, Mattel has eight movie projects underway, Kreiz said, with well-known partners such as Warner Bros., MGM and Paramount Pictures. For example, Margot Robbie is slated to play Barbie in a movie due out next year, and Tom Hanks is going to play Major Matt Mason in a live-action film.

Kreiz said Mattel is also in the process of a "capital-light" strategy that includes reducing its manufacturing footprint. El Segundo, California-based Mattel has so far consolidated one factory in Mexico, with "more coming," Kreiz said.


Source link
Read also:
Business Insider › 1 month ago
Mattel, the toymaker soared more than 18% in premarket trading. The firm beat estimates in revenue and earnings per share, according to CNBC. Mattel also said that while it had misstated public financial statements in 2017, a whistleblower complaint...
The Sun › 1 month ago
AS CHRISTMAS APPROACHES, parents are looking for toys that their kids will love and want to play with. Many are also seeking out alternatives to plastic toys that a) seem to take up every inch of space in their homes and b) aren’t very good for the...
Business Insider › Automobile › 0 month ago
Mercedes-Benz USA and Mattel have partnered to enhance STEM instruction and support it for young women. The companies, in collaboration with several other partners, have commenced a "No Limits" program, which began on Friday. Mattel and MBUSA are...
CNBC › 3 days ago
"Mad Money's" Jim Cramer breaks down how big funds are shuffling their portfolios and where individual investors can pick stock. He sits down with the CEO of Mattel toy company and the co-founders of stock-trading app Robinhood.
USA Today › Finance › 1 week ago
Mattel says it believes there’s currently a gap between the toys that are stereotypically targeted to boys and those aimed at girls.
Business Insider › Finance › 2 months ago
Toys R Us' new parent company, Tru Kids Brands, is partnering with experiential retail company Candytopia to introduce a new store concept, the companies announced in a press release on Thursday. "The Toys R Us Adventure" will have two locations — in...
One America News Network › Finance › 1 month ago
(Reuters) - Mattel Inc reported a surprise jump in quarterly revenue on Tuesday as newer models energized demand for its flagship Barbie brand, while the launch of dolls based on Korean
Reuters › Finance › 1 month ago
Mattel Inc reported a surprise jump in quarterly revenue on Tuesday as newer models energized demand for its flagship Barbie brand, while the launch of dolls based on Korean pop-sensation BTS lifted international sales.
The New York Times › Finance › 1 month ago
Mattel Inc reported a surprise jump in quarterly revenue on Tuesday as newer models energized demand for its flagship Barbie brand, while the launch of dolls based on Korean pop-sensation BTS lifted international sales.
Washington Times › 1 month ago
Mattel Inc., helped by the resurgence of Barbie and other iconic toys, on Tuesday reported third-quarter results that handily beat analysts' forecasts and offered evidence that its multiyear turnaround is gaining momentum.
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR