case

MATTEL INCORPORATED
IN : HARD TIMES IN
THE TOY INDUSTRY
® RANDALL D. HARRIS Texas A&M University–Corpus Christi
JEFFREY WYLIE MBA Student, Texas A&M University–Corpus Christi

Speaking to investment analysts on February 7, 2019, stores in the United States on June 29, 2018. Kreiz,
Ynon Kreiz, the Chief Executive Officer (CEO) of appointed while the Toys “R” Us bankruptcy was
Mattel Incorporated, said: “We’re happy to announce under way, was now the fourth CEO for Mattel in
our fourth quarter 2018 results, which demonstrate the last five years.
meaningful progress in executing our strategy and As he sat listening to his Chief Financial Officer
significant improvement over last year.”1 Beneath the (CFO) discuss the company’s earnings in detail with
confident tone, however, were some sobering results: the investment analysts, Ynon Kreiz’s mind wan-
a sales decline of $300 million for the company dered for a moment and he pondered his next move
from 2017–2018, a $500 million net loss in 2018, as CEO of Mattel. Where to begin? In the last several
and a messy bankruptcy and liquidation for one of years, Mattel had been involved in off-and-on merger
the company’s key sales outlets, Toys “R” Us. These negotiations with Hasbro, their closest competitor in
issues, combined with a global downturn for toy the toy industry. Central to these merger discussions
sales in 2018, gave a lot of urgency to Kreiz’s turn- was a painful reality: Children around the world
around efforts at Mattel. Still, there were some bright were growing up faster and were increasingly drawn
spots in the CEO’s report to analysts: Fourth-quarter to online content, movies, smartphones and video-
results for the company had shown improvement dur- games. Competition for store space, sales, and market
ing the critical 2018 holiday season, restructuring share in the toy industry was intense. Making matters
efforts inside Mattel were beginning to show results, worse, Mattel’s traditional sales channel, physical
and sales for the company’s flagship products, Barbie retail stores, were increasingly under strain and con-
and Hot Wheels, had rebounded in the fourth quar- solidating. The bankruptcy of Toys “R” Us was symp-
ter. But was it enough to reverse the slide at Mattel? tomatic of this retail consolidation. Online retail
Kreiz had been named Chairman and CEO competition, notably Amazon.com, was increasingly
of Mattel on April 19, 2018, and was succeed- making inroads into the sales of traditional brick-and-
ing Margo Georgiadis in the job. Ms. Georgiadis, mortar retailers. Mattel had also stumbled in their
hired away from Alphabet Inc.’s Google division, competition with Hasbro, losing out to Hasbro on
had been appointed as Mattel CEO in February key contracts with major companies like Disney.
2017. Unfortunately, Georgiadis had been unable Kreiz had taken the reins of the company with a
to reverse a sharp drop in Mattel’s revenues, earn- mandate from investors to streamline Mattel opera-
ings, and stock price.2 The slide in Mattel’s fortunes tions, improve the company’s focus on technology
had been sharpened by the bankruptcy of Toys and entertainment, and deliver a recovery in Mattel’s
“R” Us, a key customer for Mattel’s products, in struggling stock price. Central to Kreiz’s turnaround
September 2017. Toys “R” Us had closed all of their plan was a focus on Mattel’s power brands, such as
   Part  Cases in Crafting and Executing Strategy

Barbie and Hot Wheels, as well as a push to develop game in 1977. Initial success with the handheld game
the company’s intellectual property (IP) with a move led to the IntelliVision home video entertainment sys-
into movies and television programming. However, tem and a spin-off corporation, Mattel Electronics.
from a peak stock price of $47.82 per share in 2013, This early venture into electronics did not last, how-
Mattel was now trading between $10 and $15 per ever, as declining sales and mounting losses forced
share in early 2019. The company had reported Mattel into abandoning the electronics initiative.
losses in both 2017 and 2018. The fourth quarter of Mattel took a $394 million loss in 1983 and debated
2018, however, showed a glimmer of hope. There a bankruptcy filing. Mattel reevaluated their diversi-
were signs that Mattel was beginning to reverse the fication strategy as a result and closed or divested all
slide in their fortunes. Was Ynon Kreiz on the right non-toy related subsidiaries in the wake of the losses.
track? What more could be done? Further, what The He-Man and the Masters of the Universe
should Kreiz and Mattel do next? line of action figures was the next best seller for
the company beginning in 1982. The company esti-

Mattel Incorporated History

mated sales of the He-Man line at $400 million in
1985.5 However, the success was short lived and
Mattel was founded by Ruth and Elliott Handler out sales dropped, contributing to a loss of $115 million
of a garage in Southern California in 1945.3 Their in 1987. Mattel began a revived working relationship
first two products were picture frames and dollhouse with the Disney Company in 1988. This combina-
furniture crafted from scraps of picture frame. Their tion revived Mattel, leading to hit products based
first hit toy was the “Uke-A-Doodle,” a toy ukulele, on Disney characters like Mickey Mouse and char-
released in 1947. Mattel was formally incorporated in acters from the top-grossing Disney animated movie
1948 with their headquarters based in Los Angeles, Toy Story.
California.4 Mattel purchased Fisher-Price in 1993, merged
In 1955, Mattel began advertising their toys on with Tyco Toys in 1997, and acquired the parent
a popular television show, the Mickey Mouse Club, company for the American Girl Brand in 1998. The
which revolutionized the way in which toys were mar- company also acquired the Learning Company, a
keted to children. Mattel released a number of new U.S. based educational software company, in the fall
toys on the television show. In 1959, Ruth Handler of 1998. The Learning Company, a merger financed
created an innovative design for a new type of doll, with Mattel stock, was acquired for $3.5 billion.6 One
and named it after her own daughter, Barbara. The of the Learning Company’s more popular software
introduction of the Barbie Doll became a smash hit offerings was the “Where in the World is Carmen
and propelled Mattel to the top of the toy industry. Sandiego?” series.
Mattel would go on to sell over 1 billion Barbie Dolls, Losses from The Learning Company acquisition
making Barbie the largest selling and most profitable were almost immediate. In addition to inflated sales
toy in Mattel’s toy lineup. The Barbie Doll was fol- forecasts for the unit, Mattel had bought the Learning
lowed in 1960 with the Chatty Cathy, a talking doll Company just as children were switching from games
that would change the toy industry and lead to many and learning toys on CD-ROM to downloading them
imitators. from the Internet. Unfortunately, The Learning
Hot Wheels die-cast vehicles were rolled out in Company was delivering their products primarily on
1968. Hot Wheels toys influenced the lives of sev- CD-ROM at that time.7 In addition to the ouster of
eral generations of children, leading the company to then CEO Jill Barad, Mattel booked a $430 million
estimate that at least 41 million children had grown loss in 2000.
up alongside the Hot Wheels brand. After a long New CEO Robert Eckert moved swiftly in 2000
and successful career with Mattel, Ruth and Elliott to restructure Mattel. He dumped The Learning
Handler left Mattel in 1975. Company along with other software-related assets
Mattel was an early entrant into the electronic and began a restructuring plan for the company, with
games market, introducing an electronic handheld the goal of achieving $200 million in immediate cost
 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

savings. Eckert also reduced the company’s dividend core Barbie brand. Net sales for Mattel Inc. overall
and cut about 10 percent of the workforce.8 Although peaked in 2013 at $6.48 billion, despite the Barbie
painful, the company had better luck that year with sales slump.
licensing agreements. In 2000, Mattel retained the By the third quarter of 2014, however, sales of the
master licensing rights to market and sell Harry Barbie brand had dropped 21 percent from the pre-
Potter toys, collectibles and games, and also agreed vious year.15 What was wrong with Barbie? Analysts
with Disney to market Disney Princess dolls. acknowledged that Barbie was still one of the top
As part of CEO Eckert’s restructuring efforts, the doll brands in the world, but noted that girls were
company announced in April 2001 that Mattel would increasingly drawn to other, more innovative dolls
close its last U.S. manufacturing site and move the and games that ran on tablets, computers, and smart-
operations to Mexico.9 This plant closure was part phones.16 Further, while Barbie’s core demographic
of the continuing cost-cutting efforts at the com- used to be between the ages of 3 and 9, the market
pany, and closed Mattel’s final U.S. plant in Murray, for Barbie now appeared to be between the ages of 3
Kentucky. The plant had been operational since 1973 and 6. Children were maturing faster than ever in the
and employed 980 manufacturing and distribution 21st century. There had also been long-standing com-
workers. Mattel had been an early adopter of over- plaints about a lack of diversity in the Barbie Doll
seas manufacturing, and had been making toys in line, particularly given the changing demographics of
Mexico for 25 years and in Asia for 30 years at the the U.S. child population.17
time of this final U.S. plant closure.10 Other Mattel lines then began to join the Barbie
By 2007, approximately 65 percent of Mattel’s sales slump, including the popular American Girl
toys were made in China. This included five wholly brand, Hot Wheels, and Fisher-Price infant toys.
owned Mattel factories as well as numerous contrac- Overall net sales for Mattel dropped by $400 mil-
tor and subcontractor facilities. Mattel had also devel- lion in 2014. In January 2015, Mattel CEO Bryan
oped, over time, a reputation for quality and safety Stockton was replaced by Christopher Sinclair, a
in their manufacturing practices.11 Nevertheless, in long-standing director on Mattel’s board of directors.
May to June 2007, Mattel discovered toys manufac- In 2016, Disney moved their license to the Princess
tured with lead-tainted paint during routine safety line of dolls, including their blockbuster Frozen toys,
checks at a number of contractor facilities in China. to Mattel rival Hasbro. The loss of the Disney license
The subsequent investigation into the tainted toys had a negative impact on Mattel. Making matters
led to a crisis for Mattel, with a large public outcry, worse, sales during the fourth quarter of 2016 failed
regulatory scrutiny, and the recall of over 19 million to meet expectations, and Mattel had to cut prices to
Mattel-branded toys.12 While a major setback for the salvage the all-important holiday season.18
company, Mattel was noted for handling the recalls In the wake of the holiday 2016 debacle, Margo
swiftly and effectively.13 Mattel also moved swiftly Georgiadis was named CEO of Mattel in February
to diversify their manufacturing facilities to other of 2017. From February 2017 to April 2018,
countries in order to avoid supply disruptions and Mattel’s stock price dropped by 50 percent, and
other risks. Ms. Georgiadis was unable to reverse the continued
Mattel gradually recovered from the lead paint cri- slide in Mattel’s sales and earnings.19 In November
sis, and revenue growth for the company resumed in of 2017, Hasbro made a takeover offer for Mattel, an
2010. Then, in 2012, sales of Barbie Dolls began to offer that Mattel’s board rejected.20 Ms. Georgiadis
drop.14 Gross sales for the Barbie Doll line exceeded then left Mattel abruptly in April 2018. Former studio
$1.2 billion in 2012, and the drop in Barbie sales was executive Ynon Kreiz, a member of Mattel’s board of
balanced by strong sales in other Mattel toy lines, par- directors since June of 2017, was named the incom-
ticularly the Disney Princess Doll line. The release of ing CEO. Kreiz began his tenure as CEO of Mattel
the Disney movie Frozen provided a sharp boost to on April 26, 2018. Since becoming CEO, Kreiz had
Mattel’s Disney line of dolls and related products in been trying to shift the focus of Mattel to intellectual
2013, and this somewhat countered the slump in the property (IP) instead of tangible products.21 Kreiz
   Part  Cases in Crafting and Executing Strategy

began to move Mattel into films, television, and We have a lot to do to reach our objectives. But
franchise management of the major Mattel brands, I’m very confident that we have the right plan
such as Barbie. He had had some initial success, but and the right team in place. . . . We are already
making strong progress against our strategic pil-
more time was needed to see if he could successfully lars. My immediate focus (for Mattel) includes
change the focus of the company.22 the following priorities: implementing our
Structural Simplification to restore profitability,
stabilizing revenue, reinvigorating our concept
Vision, Mission, and to drive creativity, which I believe is essential to
Strategic Goals our success; and strengthening our collaboration
with our partners.26
Mattel Inc. had no formal mission or vision
Incoming CEO Kreiz also articulated his longer
statement. The company stated that the Mattel range vision for Mattel during the call with analysts:
Incorporated family of companies was “a world-
wide leader in the design, manufacture and market- The big picture opportunity is to transform Mattel
to an IT (information technology) driven high-
ing of toys and family products.23 The company also
performing toy company, that is more efficient,
emphasized the power of play, stating that play was more profitable and has a higher growth trajec-
essential for creating future generations of thinkers, tory. We have very strong assets, including some of
makers, and doers. Mattel had been named one of the world’s best and greatest toy brands. We have a
the world’s most ethical companies by Ethnisphere very good team and a very good strategy that I feel
Magazine in 2013, and was also ranked Number 2 very good about. So our focus now is to deliver on
our transformation plan and maximize value for
on Corporate Responsibility Magazine’s “100 Best the company and for our shareholders. This is not
Corporate Citizens” list.24 going to be easy. There’s no denying that we faced
In her report to Mattel shareholders in early 2018, significant challenges over the last few years and
CEO Margo Georgiadis had outlined five strategic there are still headwinds in certain key areas of the
pillars to transform the company and return it to business. But I feel confident about where we sit
and what we have to do to take it on.27
growth:
1. Building Mattel’s core brands into connected
360-degree play systems and experiences. Company Operations
2. Accelerating emerging markets growth with digi- Mattel Inc. had their worldwide headquarters in El
tal first solutions. Segundo, California, just south of the Los Angeles
3. Focusing and strengthening the company’s inno- International Airport (LAX). As of December 2018,
vation pipeline. the company employed 27,000 people on a world-
4. Reshaping the company’s operations. wide basis. The corporate headquarters consisted of
two main buildings in El Segundo, with additional
5. Reigniting Mattel’s culture and team.25
leased buildings in the immediate area for company
Ms. Georgiadis noted a number of changes in operations. Mattel also had another major facility in
Mattel’s executive ranks in her report, including the East Aurora, New York, which was used for North
appointment of Ynon Kreiz to Mattel’s Board of American operations and support.
Directors in June 2017. Georgiadis also noted that Mattel’s American Girl operations were based in
the organizational structure of Mattel had been flat- Middleton, Wisconsin, with a headquarters facility,
tened and simplified to accelerate decision making a warehouse and distribution facilities in the imme-
within the company. The changes had accelerated diate Middleton, Wisconsin, area. Mattel also had
under Kreiz, who had initiated significant layoffs retail and related office space in 20 additional cities
within the Mattel organization. around the United States, and 40 countries around
Ms. Georgiadis introduced incoming CEO Kreiz the world.28 Mattel sold their products in 150 nations.
on Mattel’s April 26, 2018, call with analysts. On the Manufacturing for the company was conducted
call, CEO Kreiz said: through both company-owned facilities and by
 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

contract through third-party manufacturers. Mattel Fisher-Price and Thomas & Friends, and
had company-owned manufacturing facilities in American girl brands.
Canada, China, Indonesia, Malaysia, Mexico, and 2. Toy Box. The category includes owned
Thailand. Manufacture of core products for the com- brands such as MEGA, Polly Pocket, Uno,
pany was generally conducted by company-owned Enchantimals, Fireman Sam, and Matchbox as
facilities in order to improve flexibility and to lower well as partner brands such as Disney, WWE
manufacturing costs.29 However, under Kreiz, the Wrestling, Nickelodeon, Warner Bros., NBC
company was reviewing all of their manufacturing Universal, and Mojang. These companies typi-
operations on a worldwide basis. Non-core toy prod- cally partner with Mattel to produce products
ucts were produced by third-party contract manu- for one or more of its digital content creations
facturers. Mattel also purchased some toys from such as CARS, Jurassic World, Minecraft, and
unrelated companies for resale through Mattel sales many more.
channels.
Creativity and innovation was a critical issue for Mattel had plans to update and expand many of
companies like Mattel in the toy industry. Mattel these brands including the following:
invested heavily in refreshing, redesigning, and Barbie: 2019 was the 60th birthday of Barbie,
extending their existing toy lines, as well as develop- and Mattel continued to introduce diversity to
ing brand new toy product lines for their company. the Barbie line as well as increasing animated
content.
Product design and development was conducted
in-house by a group of professional toy design- Hot Wheels: Mattel had many new and con-
ers and engineers. In 2018, the company spent tinued initiatives with Hot Wheels for 2019,
including a world tour and a partnership with
approximately $76 million on product design and Nintendo’s Mario Kart.
development.
Mattel’s toy business was highly seasonal. A Fisher-Price: The Fisher-Price product line was
significant portion of purchasing by Mattel’s focused on being a partner with parents as well
customers occurred during the third and fourth as increasing diversity and representation in its
quarters of the year.30 It was critical that Mattel animated content.
manufacture enough of the right toys in advance Toy Box: Mattel was planning to continue its
of the fourth quarter to meet this surge in demand. many partnerships with companies such as
Conversely, not manufacturing unpopular toys was Disney, NBC Universal, and many others. In
addition, the company had plans to enhance their
also important to avoid stocking unpopular items. products offerings and introduce a Pokémon
It was difficult for the company to match supply product line.
and demand with significant lead times for produc-
tion early in the year. This seasonality in demand
also meant increased need by Mattel for working Mattel Marketing
capital earlier in the year in order to meet the Marketing toys to children and their parents was an
anticipated surge in production to meet year-end advertising intensive activity. Mattel spent heavily
demand for toys. on marketing and promotional activities. Marketing
activity was seasonal, with a peak during the fourth
Mattel Products quarter of the year. Mattel advertised through TV
and radio commercials, magazines, and newspapers.
Mattel’s brands and products were organized into Promotional activity for the company included in-
two main categories: (1) Power Brands and (2) Toy store displays, major events focusing on Mattel-
Box. Each category had a multitude of products as branded products, and marketing tie-ins with various
part of their portfolio: consumer products companies. During 2018, Mattel
1. Power Brands. This category included the Barbie spent $526.4 million, or 11.7 percent of company net
Doll and related accessories, Hot Wheels, sales, on advertising and promotion.
   Part  Cases in Crafting and Executing Strategy

Of particular importance to Mattel was the rise Aviv University. After moving to Los Angeles, Kreiz
of social media and the Internet as a marketing and earned an MBA from UCLA in 1993.
promotional channel. Children and their parents In 1996, Kreiz moved to London to launch Fox
were increasingly accessing information about toys Kids Europe, a Pay-TV children’s television network.
on social media websites. Mattel had carefully devel- He served as Chairman and CEO of Fox Kids Europe
oped their Facebook presence, and had cultivated from 1997 to 2002. Fox Kids Europe was acquired by
14 million followers for their Barbie page. Mattel also the Walt Disney Company in 2001.
had a strong presence on YouTube for Barbie, with After a stint at a venture capital firm, Kreiz served
6 million subscribers. as Chairman and CEO of Endemol from 2008 to
2011. Endemol was a European-based global televi-

Mattel Customers
sion and digital production company. Then in 2013,
Kreiz became Chairman and CEO of Maker Studios
Mattel sold their products throughout the world. in Los Angeles. Maker Studios produced short-form
Mattel toys and related products were sold directly to videos for YouTube and other platforms. Maker was
discount retailers, free-standing toy stores, department sold to the Walt Disney Company in 2014. Kreiz
stores, chain stores, and wholesalers. Mattel also had stepped down as CEO of Maker Studios in January
several small retail stores near to their corporate head- 2016. Kreiz then joined Mattel’s board of directors in
quarters and distribution centers. American Girl 2017, and became Mattel CEO in April 2018.
products were sold directly to consumers through CEO Kreiz was joined by Richard Dickson as
their own retail stores and also to retailers. Mattel Mattel’s President and Chief Operating Officer
also sold some of their products online through com- (COO). Dickson, 51, had been President and
pany subsidiaries. COO since April 2015. Mr. Dickson had exten-
In 2018, two customers of Mattel accounted for sive retail experience, including almost a decade at
34 percent of company sales. These two customers Bloomingdale’s. Mattel’s Chief Legal Officer, Robert
were Walmart and Target. Exhibit 1 presents a sales Normile, was the longest serving executive at Mattel.
breakdown of Mattel’s major customers for 2016 Normile had been Chief Legal Officer at Mattel
through 2018. The retailer Toys “R” Us had been a since February 2011, and had an extensive legal
major customer for Mattel, and its bankruptcy and background.
closure in 2018 had a major impact on both Mattel All of the remaining members of Kreiz’s top man-
and the entire toy industry. agement team, including Chief Financial Officer
Joseph Euteneuer, had served two years or less in

Key Executives
their current roles. There had also been key depar-
tures from Mattel’s leadership team in 2018. Roberto
Ynon Kreiz was the Chairman and CEO of Mattel. Isaias had replaced Michael Eilola as Executive
Kreiz, 54, was born and raised in Israel. He earned a Vice President and Chief Supply Chain Officer in
BA in Economics and Management in 1991 from Tel February 2019. The Chief Communications Officer

EXHIBIT
Mattel Incorporated Major Customers (dollars in thousands)

Major Customer
Wal-Mart $ , , $ , , $ , ,
Toys “R” Us $ , $ , –
Target $ , $ , $ ,

Source: Mattel, Inc., Annual Report, accessed August , , https://mattel.gcs-web.com/static-files/d da - d - f - df- c b d .

 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

and Chief Technology Officer had also departed in sheet of $1.2 billion and $588 million in 2017
2018, and both of those positions were unfilled as of and 2018, respectively. Total stockholder’s equity
February 2019. Exhibit 2 provides a brief summary decreased from $2.9 billion in 2014 to $669 mil-
of Mattel’s top leadership team in 2019. lion in 2018. In an effort to solidify the compa-
ny’s short-term debt position, Mattel entered into

Financial Status
a credit agreement in December 2017 to provide
seasonal financing for their company operations.
Net sales for Mattel decreased from $6.02 billion This credit facility consisted of $1.3 billion in an
in 2014 to $4.51 billion in 2018. Variable expenses asset-based lending facility and $294 million in a
remained relatively stable during the 2014–2017 revolving credit facility.31 Also in December 2017,
time period, resulting in a sharp drop in gross profit Mattel issued $1.00 billion in 6.75% senior unse-
as well. However, variable expenses decreased by cured notes, due December 2020. The net result
approximately $300 million in 2018, suggesting that of these moves was total debt for Mattel reaching
restructuring efforts were beginning to stabilize the $2.8 billion at year-end 2017. The debt load,
company. The company reported a negative oper- although heavy, stabilized for the company in 2018.
ating income and a $530 million net loss in 2018. Exhibit 4 presents Mattel’s consolidated balance
Exhibit 3 presents Mattel’s consolidated income sheets for 2014–2018.
statements for 2014–2018. Cash flow from operations had been positive
Steep losses in 2017 and 2018 resulted in since 2014, but turned negative in 2017 and 2018.
retained earnings write-downs on Mattel’s balance Mattel continued to invest cash flows into the

EXHIBIT
Mattel Inc. Leadership in

Name Brief Biography

Ynon Kreiz Ynon Kreiz has served as Chairman of Mattel Inc. since May , , and as its
Chairman and Chief Executive Officer Chief Executive Officer since April , . Mr. Kreiz holds a B.A. in Economics and
Age: Tenure: Year Management from Tel Aviv University and an M.B.A. from UCLA’s Anderson School of
Management.
Richard Dickson Richard Dickson has been the President and Chief Operating Officer of Mattel, Inc.
President and Chief Operating Officer since April , . Mr. Dickson started his career and spent nearly a decade with
Age: Tenure: Years Bloomingdale’s, a leading U.S. fashion retailer.
Roberto Isaias Roberto Isaias has been Executive Vice President and Chief Supply Chain Officer of
Executive Vice President, Chief Supply Mattel, Inc. since February . Prior to joining Mattel, Inc., Mr. Isaias came to Mattel
Chain Officer Age: Tenure: Years Incorporated from Proctor & Gamble Mexico in .
Joseph Euteneuer Joe Euteneuer has been the Chief Financial Officer of Mattel Inc. since September ,
Chief Financial Officer . Mr. Euteneuer holds a Bachelor’s degree from Arizona State University and is a
Age: Tenure: Years certified public accountant.
Robert Normile Robert Normile has served as Executive Vice President, Chief Legal Officer and Secretary
Executive Vice President, Chief Legal of Mattel, Inc. since February . Mr. Normile was previously associated with the law
Officer, Secretary firms of Latham & Watkins LLP and Sullivan & Cromwell LLP.
Age: Tenure: Years
Amanda Thompson Amanda J. Thompson has been Executive Vice President and Chief People Officer of
Executive Vice President, Chief People Mattel, Inc. since September . From to , Ms. Thompson served as Chief
Officer People Officer of TOMS Shoes. Ms. Thompson held several executive and leadership roles
Age: Tenure: Years at Starbucks Coffee Company from to .

Source: “Mattel Leadership,” Mattel, Inc., https://corporate.mattel.com/about-us/.

   Part  Cases in Crafting and Executing Strategy

EXHIBIT
Mattel Inc. Consolidated Income Statements – (amounts in thousands of $,
except per share, employee, and stockholder data)

 
Net Sales $ , , $ , , $ , , $ , , $ , ,
 Cost of sales      , ,      , , , , , , , ,
Gross profit (loss) , , , , , , , , , ,
 Advertising & promotion expenses , , , , ,
 Other selling & administrative expenses      , ,     , ,     , ,     , ,     , ,
Operating income (loss) ( , ) ( , ) , , ,
 Interest expense , , , , ,
 Interest income , , , , ,
 Other non-operating income (expense), net        ,     ( , )     ( , )        ,         ,
Income (loss) before income taxes ( , ) ( , ) , , ,
 Total deferred income tax provision (benefit) , , , , ,
 Provision (benefit) for income taxes        ,        ,        ,        ,        ,
Net income (loss) ( , ) ( , , ) , , ,
 Less net income allocable to participating
– – , , ,
restricted stock units
Net income (loss) applicable to common shares ($ , ) ($ , , ) $ , $ , $ ,
 Weighted average shares outstanding-basic , , , , ,
 Weighted average shares outstanding-diluted , , , , ,
 Year End shares outstanding , , , , ,
Net income (loss) per share-basic ($ . ) ($ . ) $ . $ . $ .
Net income (loss) per share-diluted ($ . ) ($ . ) $ . $ . $ .
Dividends declared per common share - $ . $ . $ . $ .
 Total number of employees , , , , ,
 Number of common stockholders , , , , ,

Note: Mattel Inc. Fiscal Year ends on December .

Source: Mattel, Inc., Annual Report, accessed August , , https://mattel.gcs-web.com/static-files/d da - d - f - df- c b d .

EXHIBIT
Mattel Inc. Consolidated Balance Sheets – (amounts in thousands of $)

 
 Cash & equivalents $   , $ , , $    , $ , $     ,
 Accounts receivable, net , , , , , , , , ,
 Inventories , , , , ,
 Prepaid expenses & other current assets        ,      ,    ,   ,   ,
Total current assets , , , , , , , , , ,
 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

 
 Property, plant & equipment, gross , , , , , , , , , ,
 Less: accumulated depreciation , , , , , , , , , ,
 Property, plant & equipment, net , , , , ,
 Goodwill , , , , , , , , ,
 Deferred income taxes   ,   ,   ,   ,   ,
Total assets , , , , , , , , , ,
 Accounts payable , , , , , ,
 Accrued royalties , , , , ,
 Other accrued liabilities , , , , ,
 Accrued liabilities , , , , ,
 Income taxes payable   ,    ,   ,   ,   ,
Total current liabilities , , , , , , , , , ,
 Long-term debt , , , , , , , , , ,
 Benefit plan liabilities   ,   ,   ,   ,   ,
Total noncurrent liabilities , , , , , , , , , ,
 Common stock , , , , ,
 Additional paid-in capital , , , , , , , , , ,
 Treasury stock at cost , , , , , , , , , ,
 Retained earnings (accumulated deficit) , , , , , , , , , ,
Total stockholders’ equity (deficit) , , , , , , , , ,
Total liabilities and stockholders’ equity , , , , , , , , , ,

Note: Mattel Inc. Fiscal Year Ends December .

Source: Mattel, Inc., , , and Annual Report, accessed August , .

company as well, with net cash flows from invest- in 2018. Barbie revenues increased 12.5 percent in
ment activities reaching ($160 million) in 2018. 2018 and returned Barbie to billion-dollar brand sta-
Cash flows from financing activities turned negative tus. Hot Wheels revenues increased 7 percent and
again for the company in 2018, mostly from early exceeded $800 million in sales. The rest of Mattel’s
debt repayments. Cash and equivalents at year-end brand portfolio, however, continued to struggle.
2018 dropped sharply to $594 million. Exhibit 5 The American Girl product line, in particular, was
presents Mattel’s consolidated cash flow statements down sharply in 2018. Fisher-Price sales were also
for 2014–2018. soft, although some of this line’s weakness may
have been attributable to the closure of Toys “R”
Mattel Revenues by Us retailers in the United States. Exhibit 6 presents

Category and Region

Mattel’s revenues by major brand category for 2016
through 2018.
While overall revenues for Mattel were down Geographically, the revenue downturn for Mattel
approximately $300 million in 2018, there were was most pronounced in the North American region.
hints of a recovery, particularly in the all impor- Sales in North America declined from $3.01 billion
tant fourth quarter. Mattel’s two strongest brands, in 2017 to $2.76 billion in 2018. International regions
Barbie and Hot Wheels, both had sales increases for Mattel, while declining, were not declining as
   Part  Cases in Crafting and Executing Strategy

EXHIBIT
Mattel Inc. Cash Flow Statements – (amounts in thousands of $)

 
 Net income (loss) ($ , ) ($ , , ) $ , $ , $ ,
 Depreciation , , , , ,
 Amortization , , , , ,
 Accounts receivable , , ( , ) ( , ) ,
 Valuation allowance on US deferred tax assets – , – – –
 Inventories ( , ) ( , ) ( , ) ( , ) ,
 Prepaid expenses & other current assets , , , ( , ) ( , )
 Accounts payable & accrued liabilities ( , ) , , , ( , )
 Other assets & liabilities, net    ( , )        ( , )    ( , )      ,      ( , )
Net cash flows from operating activities ( , ) ( , ) , , ,
 Purchases of tools, dies & molds ( , ) ( , ) ( , ) ( , ) ( , )
 Purchases of other property, plant & equipment ( , ) ( , ) ( , ) ( , ) ( , )
 Foreign currency forward exchange contracts    ( , )         ,    ( , )    ( , )      ( , )
Net cash flows from investing activities ( , ) ( , ) ( , ) ( , ) ( , )
 Payments of short-term borrowings, net – ( , , ) ( , ) – ( , )
 Proceeds from short-term borrowings, net , , , , , –
 Payments of long-term borrowings ( , ) – ( , ) – ( , )
 Proceeds from long-term borrowings, net , , , – ( , )
 Share repurchases – – – – ( , )
 Payment of dividends on common stock     –      ( , ) ( , ) ( , )     ( , )
Net cash flows from financing activities ( , ) , ( , ) ( , ) ( , )
 Effect of currency exchange rate changes    ( , )         ,  ( , )    ( , )   ( , )
 Increase (decrease) in cash & equivalents ( , ) , ( , ) ( , ) ( , )
Cash & equivalents at beginning of year , ,       ,      ,      , , ,
Cash & equivalents at end of year $ , $ , , $ , $ , $ ,

Note: Mattel Inc. Fiscal Year Ends on December .

Source: Mattel, Inc., , and Annual Report, accessed August , .

sharply. Total international sales declined from

$2.50 billion in 2017 to $2.31 billion in 2018. Sales
Stock Performance
in the Emerging Markets category actually increased Mattel’s stock price peaked at an all-time high of
from 2017 to 2018, an unusual bright spot for the $47.82 on December 30, 2013. Sales and earnings for
company, and a possible harbinger for future growth. the company also peaked in 2013, and the company’s
Overall, international sales appeared to be more stock price closely tracked these trends in revenues
resilient to the current downturn in Mattel sales. and earnings. Exhibit 8 tracks Mattel Incorporated’s
Exhibit 7 presents Mattel’s revenues by geography stock price performance from April 2014 to April
for 2016 through 2018. 2019.
 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

EXHIBIT
Mattel Revenues by Major Brand Category, – ($ in thousands)

Brand Category
Barbie $ , , $  , $   ,
Hot Wheels , , ,
Fisher-Price and Thomas & Friends , , , , , ,
American Girl , , ,
Toy Box   , ,   , ,   , ,
Gross Sales , , , , , ,
 Sales Adjustments  ( , )  ( , )  ( , )
Net Sales $ , , $ , , $  , ,

Source: Mattel, Inc., Annual Report, accessed August , , https://mattel.gcs-web.com/static-files/d da - d - f - df- c b d .

EXHIBIT
Mattel Revenues by Geography, – ($ in thousands)

Geographic Region
North American Region $ , , $ , , $ , ,
International Region      
 Europe , , , , , ,
 Latin America , , ,
 Global Emerging Markets   ,    ,   ,
Total International Region   , ,   , ,   , ,
Gross Sales , , , , , ,
 Sales Adjustments  ( , )  ( , )  ( , )
Net Sales $ , , $ , , $ , ,

Source: Mattel, Inc., Annual Report, accessed August , , https://mattel.gcs-web.com/static-files/d da - d - f - df- c b d .

From a peak in December 2013, Mattel’s stock In early 2019, the company had been trading in
price had drifted lower in fits and starts. The Year the $10 to $15 price range. Given this price range,
2016 saw a brief rebound in the company’s fortunes, the market capitalization of the company was approx-
but a continual stream of weakening revenues and imately $4.50 billion. It was not possible to calcu-
earnings had fed the weakening price action for the late a trailing Price/Earnings ratio for the company,
stock price as well. This culminated with a major sell- given the negative earnings for the company begin-
off in October of 2017 following the release of nega- ning in 2017. Dividends for the company had been
tive third-quarter 2017 earnings for the company. suspended beginning in the fourth quarter of 2017.
   Part  Cases in Crafting and Executing Strategy

EXHIBIT
Mattel Incorporated’s Stock Performance, April –April
(a) Trend in Mattel Incorporated’s Common Stock Price
Stock Price ($)

Year

(b) Performance of Mattel Incorporated’s Stock Price Versus the S&P Index
+ %

+ %
S&P
+ %
Percent Change
= )

+ %

+ %

– %
(April

Mattel’s Stock
– % Price

– %

– %

– %

Year
Source: Mattel Inc. Stock Performance, April –April . MarketWatch, Inc.

Mattel did not repurchase any shares of its common were wholesalers of toys and craft supplies, as well as
stock in 2016, 2017, or 2018. various miscellaneous items.32 Toy and craft supplies
were purchased from both U.S. and international
U.S. Toy and Craft Supplies manufacturers and then sold to U.S. retailers, includ-

Wholesaling Industry
ing discount department stores, big-box retailers, and
independent specialty retail outlets.
Mattel participated in the U.S. Toy and Craft While industry revenues were $28.70 billion in
Supplies Wholesaling Industry (Toy Industry). The 2018, the toy industry faced an increasingly diffi-
toy industry consisted of U.S.-based companies that cult market environment in the United States. With
 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

only occasional reversals, revenue for the industry was anticipated to rise as a percentage of industry
had fallen every year since 2013. Toy industry par- revenue.35
ticipants were squeezed on all sides. On the manu- The hobby and craft supplies segment included
facturing side, large and mostly international items such as scrapbooking supplies, needlework
manufacturers were increasingly integrating verti- kits, and craft kits. Demand in this segment had
cally and bypassing the toy industry wholesalers to remained relatively stable, and was closely tied to
sell directly to large retail chains in the United States. consumer discretionary spending. Hobby and craft
On the retail side, there was increasing consolida- supplies represented 4.4 percent of industry revenue
tion of industry players, leaving only a few very large in 2018.
retailers with which to negotiate. These conditions, The other category in the industry consisted of
combined with falling demand for toys and falling various other product categories not classified else-
prices, resulted in fierce competition for toy industry where. This included items such as playing cards,
participants. Revenue for the toy industry was pro- fireworks, and coloring books. Revenues in this seg-
jected to fall by 0.7 percent in 2019.33 ment had remained fairly consistent at 15.6 percent
of industry revenue.36
Products and Services
The toy industry was composed of four major seg- Major Markets
ments: (1) traditional toys, including children’s vehi- The bulk of toy industry sales were conducted
cles, (2) video games, (3) hobby and craft supplies through major retailers in the United States. Market
and (4) other items. Demand for toys was seasonal, share of major retailers had increased, however,
with sales peaking in the fourth quarter of the year, allowing them to source toys directly from manufac-
and closely tied to consumer confidence and spend- turers. Wholesale toy companies, as a result, faced
ing. However, while consumer confidence in the a difficult and increasingly competitive environment
United States had been rising, consumers had also for sales, with significant pricing pressure from retail-
become increasingly frugal and thrifty, particularly ers. This had pressured pricing on toys downward.
with toy purchases. Consumers were tending to buy Toy companies had also begun to focus their sales
less expensive toys in order save money.34 efforts on retailers and retail chains with less pur-
Traditional toys made up 53.50 percent of indus- chasing power (smaller retailers) and also had begun
try revenue in 2018. This segment included action to focus more on direct sales of toys to consumers.
figures, dolls, sporting goods, building sets, board Exhibit 10 illustrates a percentage breakdown of
games, and plush toys for children. Demand for tra- the major market segments of the U.S. toy industry
ditional toys was under pressure in the United States. in 2018.
Children were increasingly demanding electronic Discount department stores, such as Walmart and
toys and video games. Further, children appeared Target, made up 28.6 percent of toy industry sales
to be outgrowing toys at a faster rate, particularly as in 2018. These large retailers purchased toys in large
they entered the 8 to 12 age range. Traditional toys volumes in an attempt to drive down prices for the
continued to decline as a percentage of industry rev- end consumer. Retailers had also begun to bypass
enue. Exhibit 9 illustrates the relative sizes of the toy toy wholesalers, such as Mattel and Hasbro, and had
industry products and services segments in 2018. begun to increasingly purchase toys directly from
Demand for video games, as a result, continued to international manufacturers. The net combination of
grow into 2018. Major manufacturers such as Sony these conditions continued to pressure the margins
and Microsoft continued to introduce new gam- of toy industry wholesalers. The volume of toys sup-
ing consoles, spurring new game introduction and plied to discount department stores was expected to
passionate usage by teenagers. Demand for video continue a gradual decline.
games was also increasingly penetrating younger Big-box retailers, such as Michaels and Jo-Ann,
and younger age groups. Sales of video games repre- represented 27 percent of toy industry revenues in
sented 26.50 percent of industry sales in 2018, and 2018.37 The bankruptcy of Toys “R” Us in 2017 and
   Part  Cases in Crafting and Executing Strategy

EXHIBIT
U.S. Toy & Craft Supplies Wholesaling Industry: Product and Services Segments
Products & Services

. %

Traditional Toys Video Games Other Hobby & Craft

Note: U.S Toys & Supplies Wholesaling: $ . Billion.

Source: IBISWorld, Toy & Craft Supplies Wholesaling Industry in the US. https://www.ibisworld.com.

United States closure in 2018 disrupted toy sales in independents were expected to be acquired or leave
the fourth quarter of 2018. Major toy wholesalers the industry.38
were negatively affected, and attempted to compen- The heavy competition in retail had led many
sate for the Toys “R” Us closure by moving their sales toy industry participants to attempt direct sales to
initiatives to discount department stores and other consumers through company websites. Consumers
retail outlets. rarely purchased toys in large volumes, however,
Independent specialty stores represented 21 per- making online sales generally unprofitable. Direct
cent of toy industry revenues in 2018. Independent sales accounted for 3.0 percent of industry revenues
specialty stores were smaller than other retail outlets, in 2018.
and relied more heavily on toy industry wholesalers The remaining sales in the industry were either
for shipments of toys and related items. Independent trade between wholesalers in the industry (19 per-
retailers were under considerable pressure from dis- cent of industry revenue) or directly to other busi-
count department stores and big-box retailers due to nesses (1.3 percent of industry revenue). Both sales
intense price competition from their larger competi- channels were relatively stable, and generally repre-
tors. Sales to independent specialty stores was antici- sented trade among industry participants for various
pated to remain stable, although a number of smaller reasons.
 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

EXHIBIT
U.S. Toy & Craft Supplies Wholesaling Industry: Major Market Segments
Major Markets

Direct Sales Business

% for End Use
%

Discount
Wholesalers & Department
Distributors Stores %
%

Independent
Specialty
% Big Box
Stores
%

Note: U.S Toys & Supplies Wholesaling: $ . Billion.

Source: IBISWorld, Toy & Craft Supplies Wholesaling Industry in the US. https://www.ibisworld.com.

Competition Competition in both the United States and world-

The two main competitors in the U.S. toy industry wide was very strong, and was intensifying. Individual
were Mattel and Hasbro. Combined, the two compa- toys faced shorter and shorter life cycles as children
nies controlled approximately 18.40 percent of the would discard older toys in favor of the latest fashion
U.S. market for toys.39 The remaining 81.60 percent or Hollywood movie release. Technology was also
of companies were predominately small, privately increasingly in use by children at an earlier and ear-
owned competitors with five or less employees that lier age. A phenomenon also increasingly observed
typically competed for consumers in their local com- was the trend of “children getting older younger” as
munities. Mattel had been the undisputed industry children outgrew toys at an earlier age.41 Competition
leader in the U.S. toy industry for many years, but for retailer shelf space was fierce, and was increas-
Hasbro’s sales had exceeded Mattel beginning in ingly concentrated in the hands of companies like
2017. Hasbro had seen sharp sales gains when it had Walmart and Target. Competition was also inten-
been awarded a license from Walt Disney Company sifying due to the entry of online retailers, such as
to market dolls and other products tied to Disney’s Amazon.com, who would promote toys from a wide
smash hit movie Frozen in 2016. Exhibit 11 presents a variety of toy companies and compete aggressively
revenue comparison for Mattel and Hasbro. on price.
Notable competitors in the U.S. toy industry included
Mattel, Hasbro, Jakks Pacific, Just Play Products, Lego, The Outlook for the U.S. Toy and Crafts
Mega Entertainment, Moose Toys, Spin Master and Industry
VTech. Notable competitors in the international mar- Looking ahead in the U.S. toys and crafts industry,
ket included Mattel, Hasbro, Famosa, Giochi Preziosi, revenues for the industry were forecasted to continue
Lego, MGA Entertainment, Playmobil, Ravensburger, a downward trend from 2019 to 2023, according
Simba, Spin Master, and VTech.40 to IBIS World. Industry revenue was forecasted to
   Part  Cases in Crafting and Executing Strategy

EXHIBIT
Mattel versus Hasbro Revenue Comparison – (dollars in millions)
Mattel vs. Hasbro Revenues

Hasbro
Mattel

Source: Mergent, Inc., Mergent Online. https://www.mergent.com/.

decrease at a rate of 0.9 percent per year to $27.4 to transform Mattel into an Intellectual Property (IP)
billion in 2023. The retail price of toys was also fore- driven, high-performing toy company. Kreiz said:
casted to continue to decline, as softening demand, The fundamental advantage that we have is that
retailer consolidation, and pricing pressure from we are the owner of one of the strongest portfo-
international toy manufacturers continued to pres- lios of children’s and family entertainment fran-
sure pricing in the industry. Industry participants chises in the world. And the opportunities that
were also forecasted to decline through 2023 as mar- we see are to expand our IP and franchises into
highly accretive business areas in and of them-
gin pressures continued to force the exit of smaller
selves. So we do expect incremental transforma-
and weaker industry participants in the toy industry. tive upside potential from these initiatives. And
of course, at the same time there will be a halo
Mattel’s Outlook Going into Mid- effect on the core toy business. So we would
expect to see uplift in the toy space as well.43
Wrapping up the February 7 conference call, finan-
cial analysts were very interested in Mattel’s out- After the conference call ended, Kreiz reflected
look going ahead into 2019. Mattel CEO Kreiz on the call and on the future of Mattel. While
commented: Kreiz’s initial efforts had yielded good results, more
Toys are a strategic category for many retailers. remained to be done. Was there enough time to effect
This is not just another product that they sell a turnaround?
from the aisles. It drives traffic, engagement and CEO Kreiz was also aware of discussions that pre-
obviously there is a product that has emotional vious Mattel CEO Margo Georgiadis had undertaken
connection to the consumer. So the toy industry
with rival company Hasbro regarding a possible take-
is in a good place. We see demand, we see retail-
ers leaning in, and we’re seeing consumers look- over in 2017. Those discussions had stalled without
ing to continue to be entertained, inspired and resolution.44 There was a time in Mattel’s history
wanting to play with our products. So we remain when Mattel had discussed taking over Hasbro, but
very positive about our relationships and collabo- that was not the situation today.
ration with the different retailers to step in and Ynon Kreiz had been tasked with leading the way
optimize for results.42
forward for Mattel. What were his options for consid-
Analysts also wanted to know more about Mattel’s eration? Should he consider a merger with Hasbro,
content strategy, and the efforts of Kreiz and others or perhaps another company? Perhaps now was
 Case  Mattel Incorporated in : Hard Times in the Toy Industry   

the time to reevaluate the takeover proposal from transformation plan? What were the elements of
Hasbro. Would a bid by Hasbro for Mattel spark the plan that required action, and what other steps
a bidding war, and possibly other bids for Kreiz’s should Kreiz undertake in order to restore Mattel
company? What would Mattel’s Board of Directors to market success and profitability? What were the
say if Kreiz undertook either merger or acquisition defensive actions that needed to be undertaken to
negotiations? Was a merger or an acquisition the way defend Mattel’s core products and brands, and what
forward? offensive actions should he undertake to move the
Kreiz, having been a member of Mattel’s Board company forward in the toy industry?
of Directors before becoming CEO, was very famil- Kreiz felt a deep sense of urgency as he picked up
iar with Mattel’s IP transformation plan. Was the his smartphone and headed back to the office.
way forward an excellent execution of the company’s Copyright © by Randall D. Harris

ENDNOTES
El Segundo, “ Mattel Reports Full Year and Fourth Quarter S. Mallas, “Mattel: From Plastic Producer to Producing Content,” April , ,
Financial Results,” Mattel, Inc., February , , https://seekingalpha.com/article/ -mattel-plastic-producer-producing-
https://mattel.gcs-web.com/news-releases/news-release-details/mattel- content.
reports-full-year-and-fourth-quarter- -financial. Mattel, Inc.
D. Cimilluca and P. Ziobro, “Mattel Names New CEO as It Seeks Answer to Ibid.
Sales Slump,”The Wall Street Journal, April , , www.wsj.com.
“ Annual Report,” Mattel, Inc., https://mattel.gcs-web
A third partner, Harold Matson, dropped out early in the company’s history. .com/static-files/ ad db - - d-b c- a b .
Mattel, Inc., corporate.mattel.com. “MAT – Q Mattel Inc. Earnings Call,” Thomson Reuters
Ibid. Markets, LLC, April , , https://mattel.gcs-web.com/static-
A. Goldman, “Mattel Cuts Its Losses by Giving Learning Co. Away,” files/ ad db - - d-b c- a b .
Los Angeles Times, September , , articles.latimes.com. Ibid.
Ibid. Mattel Annual Report, www.mattel.com.
A. Goldman, “Mattel Will Shut Last U.S. Manufacturing Site,” Los Angeles Ibid.
Times, April , , articles.latimes.com. Ibid.
Ibid. Mattel Annual Report, www.mattel.com.
Ibid. IBIS World, “Toys & Crafts Supplies Wholesaling in the U.S.,” October ,
L. Story and D. Barboza, “Mattel Recalls Million Toys Sent from China,” www.ibisworld.com.
New York Times, August , , www.nytimes.com. Ibid.
Ibid. Ibid.
Ibid. Ibid.
J. Kell, “Mattel’s Barbie Sales Down for a Third Consecutive Year,” Fortune, Ibid.
January , , fortune.com.
Ibid.
S. Halzak, “Barbie Sales Are Nosediving, and That’s Just One of Mattel’s
Ibid.
Problems,” Washington Post, October , , www.washingtonpost.com.
Ibid.
Ibid.
Ibid.
P. Ziebro, “Mattel to Add Curvy, Petite, Tall Barbies,” Wall Street Journal,
January , , www.wsj.com. Mattel Annual Report, www.mattel.com.
D. Cimilluca and P. Ziobro, “Mattel Names New CEO as It Seeks Answer to “Q Mattel Inc. Earnings Call,” Thomson Reuters Markets,
Sales Slump,” Wall Street Journal, April , , www.wsj.com. LLC, February , , https://mattel.gcs-web.com/static-
files/dd d -d - f -bac - a de .
Ibid.
Ibid.
P. Ziebro and D. Mattioli, “Hasbro Sets Its Sights on Mattel,” Wall Street
Journal, November , , www.wsj.com. D. Cimilluca and P. Ziobro, “Mattel Names New CEO as It
Seeks Answer to Sales Slump,” Wall Street Journal, April , ,
Mattel Annual Report, www.mattel.com.
www.wsj.com.