Mattel CEO: Not Leaving Yet
November 03 2016 - 05:50PM
Dow Jones News
Mattel Inc. Chief Executive Christopher Sinclair said Thursday
he won't hand over the reins until the toymaker's turnaround is
solidly established and the company has the right leadership in
place.
"When we've got confidence that we've got a stable enterprise,
and it's working on all cylinders, and we've got a deep foundation
of management and the right culture, then that's the time when I
will feel comfortable moving on to my dotage," Mr. Sinclair told
financial analysts, "and we will start in earnest to think about
the long-term leadership of the company."
The Wall Street Journal reported Wednesday that Mattel had
retained search firm Spencer Stuart to help identify the company's
next CEO, according to people familiar with the matter. The
succession planning would smooth the next handoff after Mattel had
to scramble the last time it replaced its CEO, who was fired in
2015 after a long sales slump.
Mr. Sinclair, 66 years old, along with his top lieutenant,
President and Operating Chief Richard Dickson, has initiated a
turnaround at Mattel since taking over 18 months ago. Mattel has
reversed sales declines at top brands like Barbie and Fisher-Price,
patched rocky relationships with retailers and deepened a
management bench with new hires that oversee branding strategies
and development of movies and shows to help sell toys.
The company has also overhauled a corporate culture that was
bogged down with bureaucracy that has allowed designers and
marketers to take more risks, with a new division called Toy Box
created as an entrepreneurial arm. "Very little of this
organization looks and acts the way it did just two years ago," Mr.
Sinclair said Thursday.
The company expects the momentum to continue next year. It's
projecting sales to rise at a mid- to high-single digit percentage
rate, helped by the release of Pixar's "Cars 3" movie. The company
also plans to refresh marketing campaigns on Barbie and come up
with a new marketing plan for Hot Wheels. It's also winning over
retailers by creating more engaging displays in stores, which are
also helping sales.
Still, Mr. Sinclair suggested that the company isn't where it
should be for him to move on. "I'm confident that when we're in
that position, we will make the right decision," he said.
Share of Mattel slipped 85 cents, or 2.8%, to $30.05 on
Thursday.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
November 03, 2016 17:35 ET (21:35 GMT)
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