Thread regarding Mattel Inc. layoffs

"What we have here, is a failure to communicate"

I've seen many postings over the last 2 years, but it's clear that neither Mattel investors or employees want to face the truth about the company. Mattel is Barbie and vice versa - this is a malignant relationship that has ruined the company.

By allowing Wall Street to view Mattel and Barbie as synonymous, the greater view of the company (a holder of classic and valued brands) is missed completely. The arrogance to think that a category like fashion dolls would NEVER be obsolete is staggering, if not dangerously naïve. Now investors wonder why this is happening. The answer is easy, investors - for years you refused to look at the business rather than the balance sheet. You chose NOT to ask tough questions at investor quarterly meetings and just accepted the outright LIES that were presented.

The fact is the company has been burning down for years - the current cycle of turmoil is indicative of a company that is lost with no map to a future. But even if Mattel had ALL the BEST TOYS and INNOVATION in the world, they would still be declining. Why? Because Barbie has been carry the profitability of the company (making twice as much margin as anything else in their portfolio) and no kids want to play with fashion dolls (never mind Barbie who doesn't have a character that's even mildly interesting - NOTHING ever happens TO her, it only happens AROUND her).

Mattel is in a no-win and no-recovery position. They can't stop investing in Barbie in lieu of their other brands, because the street won't allow it, and they can't keep investing because it doesn't provide a turnaround or ROI. There is no "come back", there is no "turnaround".

Prediction: Mattel will file for Chapter 11 before the end of Q1 in 2019.

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| 2752 views | | 14 replies (last April 24, 2018) | Reply
Post ID: @OP+SN8DQMQ

14 replies (most recent on top)

Barbie returns a better profitability than any other MAT brand. Barbie would do even better as a stand alone, stripping away all the bloated overhead required for this giant inverted iceberg to prop up all the loser brands.

Barbie is a Billion Dollar company all on her own, with great profitability and an untapped upside that will never be realized with RD at the helm. It is a shame that many of the people who could help move Barbie forward have been moved out of the company because they cost more than some know-nothing millennial with an MBA who will work for less.

Great, short term the bean counters saved money. But at what cost?

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Post ID: @3kwq+SN8DQMQ

Sure, with the insane amount of marketing $ spent on Barbie, the units shipped and (maybe) sales equate to a substantial stand-alone toy company, but the profitablity? No way. The brand's relavance has been on the decline for several years now, and the leadership team has let their personal politics drive the direction of the brand, instead of what the target audience actually buys. This has completely gutted any equity that was left in the brand. Who is asking what Barbie is up to these days? Who is calmmoring to see what the next Barbie line looks like? No one. The best attempt the brand team could put together as a PR puff piece to help prop up Q1 numbers results was "revealing" Barbie's last name. Again, who cares? No one. The new CEO's history is comprised solely of selling off companies. His primary directive will be to get as much money for the board members in a buyout as he possibly can. Whether it's the company as a whole, or bit by bit. They. Do. Not. Care.

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Post ID: @3viv+SN8DQMQ

LOL at people blaming Barbie. As a stand-alone company that brand would be in the Top 10 Toy Companies.

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Post ID: @2uml+SN8DQMQ

Throw blame wherever you all want. The truth is that it's over for Mattel. The cash reserves are depleted and Barbie isn't as relative as she once was. The new guy will find a buyer for Mattel over the next year or so

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Post ID: @2euo+SN8DQMQ

JA is just another warm keister

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Post ID: @1emm+SN8DQMQ

Mattel wanted to be covered A to Z

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Post ID: @1rpw+SN8DQMQ

Why is JA even needed if you have MZ? Isn’t creative director supposed to be MZ’s job? What does he do then?

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Post ID: @1gwv+SN8DQMQ

JA, MZ, wouldn’t know a good FP product design if it fell out of the sky and landed in their laps

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Post ID: @1dwu+SN8DQMQ

JA was a huge plus for RD when he was poolside in Palm Springs. All the boys were sooooo jealous their favorite pottery boy was a guest of RD and not them.

Might not have sold any FP product, but RD probably got something out of it.

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Post ID: @1hgm+SN8DQMQ

JA as a transformational creative director, give us a break!! This overly naive point of view has been noted on this board before. Cost the company too much money for no return on investment. All public relations hype with no results . A familiar story line. FP deserves much a better creative and business direction .

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Post ID: @1dvt+SN8DQMQ

JA is a tool and has been given a gift to be associated with Fisher Price. He is not worthy....

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Post ID: @1drs+SN8DQMQ

How dare you suggest that JA hasn't been anything less than transformational in this current role as Creative Director at FP. The man is simply amazing and his influence on FP can not be understated. From design to marketing, from Baby Gear to Power Wheels, every team at FP is stronger under his leadership, which is a lot more then can be said for most of the Mattel leadership team.

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Post ID: @awb+SN8DQMQ

Barbie, Hot Wheels and FP are great brands. Our issue has been really bad leadership not the trademarks. Given to the right people they would be amazing revenue and profit drivers. The reason why Hasbro might have a better shot making it happen. They are by no means the best, but much better than the lost teams we have leading those brands.

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Post ID: @scx+SN8DQMQ

BRB is one of the biggest brands in the entire toy industry. Standing alone she would be a Top 10 toy company. Don't blame the failures of the other business segments of the company on the brand that brings home the bacon.

Hot Wheels is one of the biggest names in all of Toydom. But year after year they fail to capitalize on that brand. Yes, the brand has been lacking real leadership for years, but even before that they were leakers. Big Name, all hat, no cattle.

FP isn't even on the same coast as the BRB brands. They used to be innovative and a leader in their segment. Bringing in a high priced boy-toy so RD could invite him to parties in Palm Springs wasn't the right answer, was it?

Toybox? 'Nuff said.

People like you seem to think BRB is a problem and Mattel should do away with her. Sure, like Ford should stop making trucks! Remove BRB from the equation and Mattel is a penny stock.

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Post ID: @aiv+SN8DQMQ

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