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Is Mattel CEO "Resignation" A Sign Of Things To Come For Retail Execs?
In the three years since Bryan Stockton took over as CEO of Mattel, the company's revenues have tumbled and debt load has soared over 30% as - despite share buyback bonanzas, the stock price has greatly rotated to unchanged since Jan 2012 when he took over. However, what is most important about today's "resignation" is it accompanied dramatic guide down on earnings as, among other things, Barbie doll sales collapsed 21% in Q3.
As The Wall Street Journal reports,
Mattel Inc. said Monday that Chief Executive Bryan Stockton has resigned after three years in the top executive post, as the struggling toy company also posted disappointing preliminary results for its fourth quarter.
Christopher A. Sinclair, who has served on the toy company’s board since 1996, has been named chairman and interim chief executive.
“Mattel is an exceptional company with a great future, but the board believes that it is the right time for new leadership to maximize its potential,” Mr. Sinclair said in a news release.
...
The leadership shuffle came as Mattel posted a preliminary profit in its fourth quarter of 44 cents a share. Sales fell 6% to $1.99 billion. Wall Street had expected 88 cents a share in earnings and $2.14 billion in sales, according to FactSet.
Mattel has struggled in recent quarters as its Barbie doll has fallen out of style. Sales of the iconic fashion doll fell a staggering 21% in the third quarter, contributing to a 22% drop in profits and an 8% decline in sales for the toy maker.
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So the question now is, will every retail 'miss' be accompanied by a CEO 'execution' or is this widespread weakness - despite the unambiguously good low oil price tax cut - merely transitory and Q1 will be awesome...?
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don't worry about stockton, he got plenty
LEGO is partly the reason for Mattel's downfall.
Making Barbie brown and latina couldn't have helped. Those demographics don't have the same amount of discretionary income as whites.
Yea - and they fucked up Fisher-Price so bad they had to release the 'classic' lines again becuase all the shit over the last 10 years from F-P was chinese garbage even Walmart couldn't mark down fast enough.
One advantage, or disadvantage, of the horrendous Dear Leader economy, depending on one's perspective: Executing company CEOs as their companies go down from Dear Leader's business strangling policies.
All going as planned...
A few years as CEO at one company and golden Parachute into the next two weeks later, whee!
CEO's getting out while the getting is good? Sounds about right.
Kids don't want Barbie dolls anymore they want quad copter drones....get with the times, Mattel.
They want porn on their iPhones.
Who doesn't?
Nail guns for everyone!
Just you wait and a whole line of CEOs will be queuing up to resign .... IBM, HP, Ebay, ....
And all just coincidently right before their companies take giant turd baths.....
Think we need a Bung hole Barbie pic like Kermit
robotics killed the Barbie doll !
I'm waiting for the Japs to do their thing. Make it near life-like (no back talk, headaches, whining/dining, or shopping sprees), highly flexible, able to clean itself up afterwards, and get me a sammich and da wominz is done. ;-)
Think Barbie may be in for a birth rate decline. Kids grow up so fast today that the Barbie appeal is very short add to that the huge decline in births. Check out baby diaper sales. Been down for years.
umm.. I HOPE SO
the rentier class.. ya know.. thse useless crony /nepotistic ceo fucks.. skill less twits and frat bros...
long guillotines, just like their brothers.. the bankster class
Not a new trend at all. The stock market valuation determines how fresh the Chiefs resume needs to be. Electronics, birth rates, etc; don't expect continual, unimpeded growth.
Ken needs to marry Bobby.
Hispanic Barbie and her cartel boyfriend Julio should have been a best seller last year?
Why not? We could use more Barbies to replicate the world we live in - Lesbian Barbie, multi-racial Barbie, Divorced Barbie, Asian Barbies (but you cannot remove pants from Japanese Barbie), etc.
Barbie gets a job at the UN sterilizing little Indian girls with polio vaccinations.
They need a Kardashian Barbie Line.
Note to Mattel-- Oil workers tend to be younger and have kids. They are away from home a lot. They love their daughters, and will buy Barbie dolls to give them -- if they have a job!
Most kids just want a smart phone as early as 6. With that they are entertained for hours. Smart phones sucked the guts out of a lot of industries.
They need to put body parts on the Barbie and Ken...so the kids can reinact what they see on the internet....porn for the kiddies...and make sure they are gay playable....so a long tongue on barbie is a must....if we keep dumbing down the masses...we need to dumb down the toys too....
Barbie is soooo hetero.....
Can't be true - company financial data affecting a stock price? They should immediately open a social media division.
Yes. Time to deploy that golden parachute...
Good gig if you can get it.
Hope he received his golden handshake for overseeing personally the unloading of the shipments of plastic chinese shit from the docks. A fucking fallen HERO in my book. s/c.
Billions of Barbies have been sold..maybe not as many as MacDonalds hamburgers, but close. Sales are down because no more need to be made....or whatever.
Time to bring back the Kit kittredge and Betty Boop dolls happy days are here again
Reconfigure those Barbie Dolls to be life size and made out of silicone. Sales will be " robust! " Look at those Japanese "Love DSolls." They can't manufacture them fast enough. I think Love Doll sales are are 30% of Japan's GDP.
Babies are ugly. The UN promotes sex dolls as a method of birth control.
Batteries failed on the virtual reality googles that is gaap acounting.
I think sales of barbies dont drop 20% in a quarter. Might choke on stuffed channels and planned sales pulled forward Not exactly something new or exicting is business as usual in public cos.
I smoke a joint every day at 4pm so I end the day on a high note.
I have a close family member inside Target Corporation Headquarters. It is a blood bath there, and though firings have not peaked yet, what really has team members sweating is the possible switch from employee to contract worker! When you get a choice, be fired and leave or stay and become a contract worker, many will be faced with that tough choice. We all know what contract worker means, vactions, sick days, pensions, paid holidays, health insurance, fixed work schedules, compensation upon termination. All is up for negotiation.
Target is really in the shit, as retail sales to Americans with falling incomes is no longer a growth industry. I keep saying, the race to the bottom with wages is good for markets good for profits. But only until customers run out! Corporations think when every last American is working for low wages that they will have won their battle against labor! Yes, but at what cost?
I used to have business types bitch to me when I was an employee commanding a good hourly wage. I just told them, okay if it bothers you, I will never do business with you again, period. Then they go away thinking, "oh, I forget, this guy is a potential customer". Low wages = broke consumers/
I have a small business now. If workers earn shit wages, I have nobody who can afford to come enjoy my services. As a business, I need people with disposable money, the more the better. When does big business figure this out?
"Corporations think when every last American is working for low wages that they will have won their battle against labor! Yes, but at what cost?"
Ford may have been an anti-semitic SOB, but at least he knew he had to pays his workers sufficient to buy stuff, preferably his cars.
When they come out with candy crush/bubble bobble dolls sky is the limit!
Better smoke two Spungo regards
https://www.youtube.com/watch?v=h0i62GnQoo0