Categories Retail

Mattel chief steps down amidst challenges

Margaret Georgiadis, CEO of Mattel (MAT) — the troubled toymaker mostly known for the iconic Barbie dolls — has decided to step down from her roles amidst huge challenges, to pursue a new opportunity in the booming tech sector.

This management change comes at a crucial time when the company is rigorously working to revive its sales, which has been on a constant decline since 2013.

During her 14-month tenure, Georgiadis — who joined Mattel from Google (GOOGL) — had focused on boosting growth for its biggest brands. Under her leadership, the toy company cut jobs, suspended dividend, and accelerated cost-cutting to scale back up. But none of these strategies helped lift the company’s sales. Last year, Mattel reported a 11% drop in its total sales to $4.9 billion.

Margaret Georgiadis, CEO of Mattel (MAT) — the troubled toymaker mostly known for the iconic Barbie dolls — has decided to step down from her roles amidst huge challenges

The condition worsened when retailer Toys R Us Inc, which accounted for 15-20% of Mattel’s US sales, filed for bankruptcy last year.

Shares of the company dipped almost 3% on Thursday on this news. Georgiadis — who plans to join Utah-based online company Ancestry — will now be replaced by Ynon Kreiz, who was slated to become the chairman of the company. Kreiz, former Maker Studio executive, has more than two decades experience in the entertainment industry.

Kriez is expected to generate new revenues for the company mirroring rival Hasbro (HAS), which initially started out as a toymaker but gradually moved to licensing and distributing their own content. Last year, Hasbro’s net revenue in the Entertainment and Licensing segment grew 8% to $285.6 million.

Mattel is not the sole toymaker that is struggling. Lego has also been striving to boost its sales after years of profit. Maybe these companies have a lesson or two to learn from Hasbro, which has diversified into multiple streams of revenue.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top